Crain's Cleveland Business

VOL. 38, NO. 29

JULY 17 - 23, 2017

CLEVELAND BUSINESS

CLEVELAND METROPARKS AT 100

A century of wearing the ‘Emerald Necklace’ SPECIAL REPORT, PAGES 11-17

Illustration by Daniel Zakroczemski for Crain’s Entire contents © 2017 by Crain Communications Inc.

CONTENT

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NEWS AND TRENDS FROM NORTHEAST OHIO’S TECHNOLOGY SECTOR

TECH MATTERS Q A New Pathways In 2015, a nationwide public-private initiative called TechHire was implemented in communities across the U.S. to address the shortage of qualified workers to fill open tech positions — which at the time was about 500,000 and projected to surge to 1 million by 2020. TechHire’s goal is to help companies fill in-demand tech jobs with individuals who have completed high-quality training.

ConxusNEO, an Akron-based Collins nonprofit, is convening those efforts locally. Michelle Collins, its vice president, elaborates:

Q: A:

What does the local job market in IT look like?

There is only one college graduate for every six entry-level postings, so there is a great opportunity to find a tech job in Northeast Ohio. We want both the youth and adult populations to learn about viable tech careers and training opportunities — from credentials that can be earned in high school to accelerated training options.

Q: A:

What types of tech jobs are in highest demand in Northeast Ohio?

Software developers, computer and information analysts, computer support specialists, and database and network systems administrators. Most IT job ads seek to hire experienced workers with at least three to five years of relevant experience. Ads to find senior personnel typically want to hire workers with six or more years in IT and/or the employers’ industry. This leaves about 25% of all IT job ads with openings with little job experience. Most require a bachelor’s degree.

Q: A:

Can job candidates bypass the bachelor’s degree requirement?

TechHire is a skills-based hiring initiative, so it’s our hope companies will shift their hiring practices to also consider candidates with skills gained from non-traditional pathways. The data show colleges and universities aren’t able to keep up the pace to graduate enough students to meet demand. A shift in companies’ practices will increase their talent pool.

Q: A:

What types of skills are employers looking for when it comes to tech jobs?

The technical skills for a software developer include SQL, Microsoft C#, JAVA and .NET. The skills for an entry-level support specialist are primarily Microsoft Office suite. The work-ready skills in most job postings include communication, writing, problem solving, troubleshooting and teamwork.

Q: A:

What advice do you have for someone who wants to pursue a career in tech?

Anyone interested in pursuing a tech career is encouraged to learn more about the IT training provided by our partners, including University of Akron, The Software Guild, Stark State College and We Can Code IT.

N

ortheast Ohio’s IT talent crunch is emblematic of a nationwide systemic challenge.

There are too many open jobs in IT, and not enough qualified candidates to fill them — at least by the traditional employer measurements of education and work experience.

Nationally, about 1 million IT jobs are projected to go unfilled by 2020. In Northeast Ohio, for every IT college graduate in Northeast Ohio there are anywhere between three and 10 IT job ads.

In response, the leadership of the Regional Information Technology Engagement Board, its employer and higher education industry partners and other stakeholders are developing higher-level regional collaborations that aim to backfill supply with a proficient and diverse talent pool. “(We) are working at not only a 30,000-foot view but also talking about how we can make measurable progress in short order on the region’s challenges in this space,” said Courtney DeOreo, director of RITE. “RITE and these folks are talking about a new way of ‘operating’ or working together that will be very distinctive to our region and an example for other regions.”

Those entities are examining the skills gap shortfall by looking closely at job occupation, and whether each position is defined as entry level or mid-level.

Additional efforts include the creation of alternative career pathways such as boot camps and other accelerated training programs that are plugging some of the gaps.

Workforce development leaders also are looking at ways higher education curricula can be tweaked or even customized, while IT companies and organizations are building deeper relationships with kindergarten through 12th-grade classrooms. Skills-based hiring models are gaining traction, and employer-led fast-track skill progression programs are being considered.

As just one example, TalentNEO, a

RITE Board partner, launched a program a couple years ago to expand access to employment opportunities for job seekers who have the right skills but lack the experience or education necessary to be considered eligible for entry-level positions, such as developers or computer support specialists. A network of local workforce development interests are working with TalentNEO to provide skills assessment tests in communities characterized by lower employment rates in Cuyahoga and Summit counties.

The tests are designed to assess realworld cognitive skills needed among most jobs, said Jill Rizika, executive director of Towards Employment, a nonprofit that

helps economically disadvantaged people find work, and one of TalentNEO’s partners.

As for the dearth of more experienced positions, employers have grown weary of poaching employed IT talent from other local companies.

“We’ve found that a successful methodology is for us to recruit those folks from the West and East coasts who have roots here, and want to return to the Midwest because of the cost of living, amenities, energy and reinvestment. But their dreams need to be met with sustainable opportunities,” said Kevin Goodman, managing director and partner of BlueBridge Networks, a Cleveland-based cloud computing services firm, and a board member of RITE and OhioMeansJobs | ClevelandCuyahoga County.

In order for the region to be successful, there needs to be an increased emphasis on diverse candidates, veterans, immigrants and women when recruiting, he added.

Meanwhile, RITE has started to convene quarterly HR IT Roundtable meetings and coordinating efforts with a broader network of IT industry representatives as part of its new strategic plan to champion solutions for the region’s tech challenges.

“We’re bringing employers and recruiters to the table, and looking at how to build talent to spec,” DeOreo said. “We’re exploring pilot projects such as apprenticeships, learn and earn models, work-based learning and other skill-up initiatives.”

We intentionally engaged these partners in our planning process because of the collective need to find a new way of optimizing our individual assets and enable a highly skilled, industryresponsive IT workforce, she said.

“These are high-road, high-wage, family sustaining and recession-proof jobs that offer upward mobility,” DeOreo said.

“We want to put as many people in the IT pathway as possible.”

AUG. 18-20

AUG. 25

Weapons of Mass Creation Fest: Various locations in the Cleveland area. The eighth annual WMC invites entrepreneurs, business owners and students from Northeast Ohio, the Midwest and beyond to this three-day conference. The event features speakers, workshops, networking and a chance for attendees to “ignite” their potential and inspiration through shared passions. Info: wmcfest.com

Flight, The Midwest Startup Conference: 8 a.m. to 7 p.m., John S. Knight Center, 77 E. Mill St., Akron.

This is a conference for those who build, fund and support scalable startups.

Info: launchleague.org/flight/

THE GROWING

DEMAND FOR TECH WORKERS

CALENDAR OF

EVENTS AUG. 9 Caffeinated Ideas in Canton: 10 a.m. to 11 a.m., Junior Achievement of Stark County, 4353 Executive Circle Northwest, Canton. Do you have a solid business or product idea and need some advice? Brainstorm your concept with a team of experts over coffee at this event, presented by Stark Entrepreneurship Alliance.

Info: jumpstartinc.org/events/caffeinated-ideas-canton/

TO READ PREVIOUS TECH MATTERS STORIES, GO TO crainscleveland.com/techmatters.

A PRODUCT OF

CRAIN CONTENT STUDIO C l eve l a n d

CRAIN’S CLEVELAND BUSINESS

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PA G E 3

Building’s uncertain future concerns tenants

By JAY MILLER jmiller@crain.com @millerjh

Tenants of an East Side business center are worried they could be on the street at the end of July, and they’re not sure why. They’d rather stay than move, despite problems with the aging building, the Glenville Enterprise Center on East 105th Street, just south of the East Shoreway.

“We cannot move in eight days. We cannot move in 30 days,” said tenant Leo Zinger, owner of LZ Custom Cabinets, a commercial cabinet maker.

“We have 25 employees.”

Zinger, who said he has operated his business in the complex of buildings for 19 years, was referring to two letters he got from Cushman & Wakefield/ CRESCO Real Estate, which manages the building for the owner, the Cuyahoga Land Bank. The first letter arrived in late June notifying him that he had to vacate by the end of the month and that the building was closing. Since his firm is spread out over 24,000 square feet and it uses a lot of heavy equipment to build cabinetry for apartment buildings, he can’t vacate on such short notice.

Fortunately, he heard from Rico Pietro, the Cushman & Wakefield partner overseeing the building before the end of June, that he could stay.

But at the beginning of July, a second letter arrived, notifying Zinger, whose company has been on a monthto-month lease for much of time he has operated in the building, he would

Some tenants of the Glenville Enterprise Center on East 105th Street have been told to move by the end of the month. (Jay Miller)

have to leave at the end of the month.

He said he and his son, Gary Lapinsky, are in the early stages of working on a plan to buy the building, but the uncertainty makes him nervous.

Another tenant got the same letters.

“It scares the hell out of me,” said Will Keller, owner of Belgian Style Ales and Monastery Greetings. “I’ve been a 15-year tenant of this building, and (they) give me eight days (to move out) when I need 120 days to transfer my (liquor) license.”

Keller leases 7,500-square feet in the 1920s-era building for his businesses, and he said he’s scouting new locations. His liquor license for Belgian Style Ales, an online merchant for a range of hard-to-find Belgian ales, is tied to the East 105th Street location.

His other business, Monastery Greetings, is an online seller of religious and spiritual gifts made by abbeys, convents, monasteries and hermitages.

Both Zinger and Keller complain that

the management company has done a poor job of maintaining the building.

They said the roof of the main, four-story building on the 150,000-square-foot campus has leaked for years, though, fortunately, that has not affected their first-floor businesses. Zinger showed a reporter water running continuously in a urinal in a men’s room and, above that, broken window glass.

A third tenant, the Evergreen Cooperatives Corp., is the largest tenant in the complex. It occupies a one-story space at the north end of the complex.

Evergreen is an initiative created by a handful of local institutions, including the Cleveland Foundation, the Cleveland Clinic, University Hospitals and Case Western Reserve University. The Evergreen strategy is to create businesses that will eventually be owned by employees and that will bring low-wage jobs into the city.

Its president, John McMicken, said his businesses would like to stay at the

105th Street campus. The laundry occupies 11,000 square feet in its portion of the complex, while Evergreen Energy has 10,000 square feet in the four-story main building. The Evergreen businesses, McMicken said, still have several years on their leases.

McMicken is optimistic about the Glenville center’s future, even though Evergreen has had an ongoing battle over maintenance that has seen it put $140,000 in rent payments in escrow, pending maintenance improvements.

He said the rent issue predates the land bank’s ownership, and he believes the situation will be resolved and his businesses will be able to remain.

“We’re dealing with people at the land bank (and the management), all of whom are community driven,” he said. “We’re hoping we can get all the people in a room (in the next few weeks) and sort this out.”

The building’s problems, in a way, are a reminder first of the decline of manufacturing in the area in the late 20th century and then of the housing crisis of the past decade.

Built in the 1920s, the complex was home to several of Cleveland’s pioneering manufacturers and, eventually, their research centers, including Cleveland Graphite Bronze, which became Clevite Corp., and then Gould Corp.

In 1991, Neighborhood Progress Inc., now Cleveland Neighborhood Progress nonprofit development organization, and Shore Bank, an affiliate of Chicago’s South Shore Bank, began turning the complex into mixed industrial-office use. Shore Bank described it as an incubator for

small businesses and community service organizations.

At its high point around the turn of the century, the property housed as many as 37 businesses. Beginning in 2006, the Entrepreneurial Preparatory School, or E-Prep, operated its charter school in the building.

The building’s decline began when Shore Bank, which was also a major tenant, failed in 2010, a victim of the housing crisis. The Cleveland operation survived but struggled. The building’s owner of record was a threadbare entity called Shorebank Enterprise Group.

To avoid a shutdown, in 2016 the building was turned over to the Cuyahoga Land Bank, now the owner of record. The land bank hired a partnership of Fred Geis of the Geis Cos. and Pietro to manage the building.

Gus Frangos, president of the land bank, declined to talk to Crain’s about the building, citing negotiations underway to resolve its situation. Pietro did not return three phone calls seeking comment.

Lapinsky, who has an electronics business in Willoughby, Ascendtech Inc., and owns several commercial buildings, believes a purchase by him and his father could solve everyone’s problems.

“I believe we have a comprehensive plan to save the building,” said Lapinsky, who used to operate his business from the 105th Street building. “But for us to make a purchase, there are a lot of unknowns. There is so much deferred maintenance. We don’t want to purchase a sinking ship.”

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CRAIN’S CLEVELAND BUSINESS

NEO market an integral part of Fifth Third’s growth plan

By JEREMY NOBILE jnobile@crain.com @JeremyNobile

With the transition of some leadership in the Northeast Ohio market, Cincinnati-based Fifth Third Bank’s backyard, CEO Greg Carmichael emphasized the company’s plans to double down efforts here to grow business as the bank continues along a multiyear plan to cut costs and grow profits.

Project North Star, as that threeyear plan taking the bank into 2019 has been dubbed, designates the

Northeast Ohio region as a growth market where the company sees additional opportunities.

And it’ll fall to Joe DiRocco, Fifth Third's new Northeast Ohio president who took the role this spring after previously serving as Ohio market executive for Citizens Bank, and Jerry Kelsheimer, who held DiRocco’s position before moving into an expanded regional chairman role, to achieve that growth here.

Carmichael visited Cleveland last week to meet with team leaders and clients. Although it’s in a relatively quiet period for banks right now with second-quarter earnings com-

ing out later this month, he and DiRocco shed a little additional light on how the bank, with $143 billion in assets, sees the region playing into its growth efforts.

“There’s always opportunity to reassess our performance in the market,” Carmichael said. “We see this as an opportunity to do more and a better job of continuing to find ways to elevate our position in the marketplace. This is not a market where you want to lose momentum. But anytime you have a transition, you need to be mindful of how that impacts the community.”

SEE FIFTH THIRD, PAGE 21

IRG buys former Higbee’s store to expand North Randall site

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With 74 acres of industrial land in North Randall available thanks to its demolition of the former Randall Park Mall, Industrial Realty Group stands to add to it another 10 acres after buying a mall leftover: an empty department store.

Built in 1976 as part of the former 2 million-square-foot mall, the building at 21201 Northfield Road had been a Horne’s and a Higbee’s, and, most recently, a warehouse, according to property records.

That retail run stands to end for good after an IRG affiliate, North Randall Northfield Two LLC, bought the three-story building June 13 from

Meredith Suites LLC, a North Carolina investor group, for $1.35 million, according to Cuyahoga County land records. The store had 240,000 square feet of commercial space.

Stuart Lichter, IRG president and CEO, said in a phone interview July 10, that the industrial realty owner with an outsize Northeast Ohio presence wouldn’t try to lease space in it for industrial use.

“It’s for continued site assembly,” Lichter said, indicating the company would raze it sometime in the future.

IRG already has one former department store it has tried to lease since acquiring the mall property in 2013.

The former Macy’s store at 20801 Miles Road has 180,000 square feet of the property’s 280,000 square feet available for lease, according to online data provider CoStar.

The former mall site was demolished in 2014, but as was typical for malls, some department stores owned their buildings separate from the mall. The former J.C. Penney store at the mall was converted to a training center in 2008 by Power Sport Institute, a technical college, in a deal before IRG launched the industrial park plan.

Lichter declined to discuss the status of the park more broadly. Lichter’s IRG, with Ohio partner Chris Semarjian, owns multiple industrial and office properties throughout Ohio, from the former Goodyear headquarters in Akron to the former Ford Plant in Lorain.

North Randall Mayor David Smith did not return three phone messages to discuss the industrial park by Friday, July 14.

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CRAIN’S CLEVELAND BUSINESS

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Manufacturers form own apprenticeship program Employees at Medina County manufacturers who want to add to their skills will soon have a more convenient option as a new employer-run group brings apprenticeship training to Brunswick.

And this is just the beginning of the Medina County Manufacturers Partnership, which kicked off earlier this summer. What really makes the initiative stand out is that it’s being led by industry, not by a school or outside group. “It’s employers coming to the table to try to drive real change,� said Jennifer Compton, human resource manager at Automation Tool & Die Inc. in Valley City.

Automation Tool & Die convened the first meeting in June, Compton said, and the group will meet next month to form an official board structure. Compton said in an email that the companies making up the core group of the partnership, in addition to Automation Tool & Die, are Atlantic Tool & Die, Clampco Products Inc., Die-Mension Corp., FireDex LLC, I.D. Images LLC, Northlake Steel, SFS Intec, Superior Roll Forming and Technical Tool & Gage Inc. Other companies are welcome to join, and the group is looking to put a website together.

While competition could be a concern in a group like this, Compton said she thinks it’s “an easy thing to overcome,� as the partnership wants to work with companies that are doing good things for manufacturing and the industry’s image overall.

Going forward, the partnership will have the opportunity to address a variety of other issues of interest to its members, from workers’ compensation to OSHA to outreach at schools, Compton said. But it decided to start with workforce.

Companies are struggling to fill open positions, she said. The workforce has aged. The apprenticeship model has declined. And that doesn’t even account for the employees who need to learn skills to keep up with the new technology in plants.

But there isn’t a community college based in Medina County, and that presented a challenge. Cuyahoga Community College’s Brunswick location offered an opportunity, though.

Tracy Rieth, human resources training coordinator at Strongsville-based Atlantic Tool and Die, said it can be tough for the company’s Medina employees to work all day and then drive to Cleveland for training. Atlantic Tool has plants in Seville and Sharon Center, as well as a plant in Texas and some international locations.

And even if the company could do an apprenticeship program on its own, the community colleges have minimum enrollment levels, which can also pose a problem, Rieth said.

The partnership gives them a larger group on which to draw.

The training will be delivered jointly by Cuyahoga Community College and Lorain County Community College at Tri-C’s Brunswick location.

When the group was putting the program together, it realized that many technical programs had a lot of the same prerequisites, like blue-

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print reading and technical math, Compton said. The apprenticeship will be designed to focus broadly on advanced manufacturing, but each company will have to get its apprenticeship certified, she said. The first cohort is expected to start at the end of August, and so far, about 18 incumbent employees from the companies in the group have signed up.

Tri-C works with a variety of organizations, from economic development groups to other community colleges, to address workforce needs, said William H. Gary Sr., the college’s executive vice president for workforce, community and economic development. He said it’s encouraging to see the business community taking the lead on addressing its needs and reaching out to community colleges to meet them. The colleges want to support the business community where it can, he said.

Kelly Zelesnik, dean of engineering, business and information technology at Lorain County Community College, said it was a “great opportunity� for the two colleges to pool their resources to bring services to a county that neither are fully in. Lorain County Community College has often partnered with other educational institutions. The schools face a lot of the same challenges, and sometimes working together allows them to have a larger impact on the region overall, she said.

The Medina County group was inspired by a similar employers group in Cincinnati called the Partners for a Competitive Workforce, Compton said. And she hopes to see employers in other regions take charge to tackle their own issues in the future.

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PA G E 7

Examining ethics of lucrative ‘pretrial industry’

By JEREMY NOBILE jnobile@crain.com @JeremyNobile

A veteran Cleveland litigator is calling out lawyers for what he’s dubbed an abuse of the legal system and the resulting explosion of a so-called pretrial industry that draws out the time and, ultimately, the costs of lawsuits often only to the benefit of attorneys and their wallets, but not clients.

In an industry where the billable hour remains king and corporate lawyers are motivated — if not outright directed — to draw out discovery and cases in general to maximize compensation, what Case Western University School of Law professor Andrew Pollis asserts in his recent Fordham Law Review research paper, “Busting Up the Pretrial Industry,” might be considered blasphemous in legal circles.

But Pollis brings a unique perspective. He’s in academia today but spent 18 years as a litigator with Hahn Loeser & Parks. And while he maintains that he, personally, wasn’t engaged in the sort of overbilling or overworking commonly known as “churning” in the business, his views are wholly rooted in professional experience.

“One of the major drivers of what I call the pretrial industry is the fact that it’s a profit-driven model,” Pollis said. “Lawyers make money if they bill by the hour. It’s an undeniable fact. And this all builds up an instant inertia compelling lawyers to bill as much as they can get away with. That is entirely at odds with the efficiency and economically feasible resolution of disputes that you would hope that our legal system would strive for.”

Compounding the problem is that, at times, large institutional clients may actually want to drive up costs for the

other side, deciding to pay a fleet of lawyers a boatload of money with the expectation their adversaries may not be able to keep up. It’s the idea that deeper pockets could Pollis lead to victory.

That means, Pollis lamented, resolutions might come not on the merits of a case, but as the result of who can make the process as painful and costly for the other side as possible.

And is that really how an ethical legal system should operate?

Pollis doesn’t think so.

And while he’s not the first to espouse such a perspective — other academics have certainly researched and critiqued the so-called pretrial industry — the fact this thinking flows from a seasoned litigator and not a career law professor is notable.

That’s something Robin Effron, co-director of the Dennis J. Block Center for the Study of International Business Law at Brooklyn School of Law, points out. Effron has applied some of Pollis’ work to her own research on federal legal rules.

“Because lawyers are comfortable with how the pretrial industry works and benefit from the structure, I think they are unable to see the structure itself is causing a lot of problems,” Effron said. “I think it’s pretty significant that he was a litigator and is saying, “I do know how things go on, and I still think this is pretty expensive.’”

Ruffling feathers Indeed, suggesting litigators tend to abuse the legal system in the pretrial phase for their enrichment is a pretty gutsy claim. And it’s amplified at a

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time when the legal business has been in a state of flux, evolving in the wake of clients’ tighter legal budgets and demands for efficiency that have put pressure on firm revenues in the years trailing the Great Recession. When revenues stall, firms, by and large, direct lawyers to the bill clients as much as possible. It’s simply a reality.

Pollis threw some shade at industry recognitions of the sort like BTI Consulting Group’s “Fearsome Foursome,” which bestows its title on firms other attorneys would most fear having to face in the courtroom. He contends that while those lists, which regularly include powerhouse firms like Jones Day, are populated with firms considered to harbor some of the industry’s brightest attorneys, the underlying implication is that those firms are just going to agonize their opponents through long, drawn-out and hyper-expensive cases, beating them into settlements.

“The problem is, one is a laudable goal, that is, doing high-quality legal work,” he said. “The other is a travesty: Let’s make the other side as miserable as we can.”

Many critics of Pollis would argue this is simply how lawyers make their money, and there’s nothing inherently nefarious with that.

And there are certainly instances where lawyers doggedly working discovery on a tough case for months, or even years, at a time have found the damning evidence needed to close or settle a case with an objectively evil adversary, Effron noted, like a company abusing or discriminating their workers.

Yet Pollis contends the abuses are more pervasive than those instances.

'Fox guarding the hen house' Where some practicing litigators and Cleveland firms wouldn’t discuss Pollis’ research, Rick Stege, a trial law-

yer for nearly 50 years and a teacher of legal ethics — he’s taught at Case Western Reserve School of Law and Cleveland Marshall College of Law — thinks Pollis is on to something.

But he doesn’t think lawyers will ever recognize it.

“I doubt that law firms in town will acknowledge that Pollis is correct,” Stege said. “After all, why bite the hand that feeds you? Why broadcast your candid observations? Firms like to be known as the toughest dudes in town. It is not kosher to tell your corporate clients that you, as their counsel, will only use such strategies that make sense and will not use them to attempt to intimidate the other side or to force a settlement. Clients may think you are a weakling.”

Stege practices today at the small Pepper Pike law firm Stege & Michelson (while he’s a researcher of legal ethics, it’s worth noting much of his work, but not all, has been in personal injury, and these pretrial abuses are most common in corporate litigation).

As a researcher himself, Stege gives Pollis “high marks” for his "candor and insights."

Pretrial tugs of war are the “true battlefield” today in an hourly billing world, he said, and the complexities have skyrocketed.

“To call it an ‘industry’ is hardly flattering to our profession,” Stege said, “but hits the nail on the head.”

That style of litigation focusing on pretrial work and beating opponents into submission during that often overly drawn out phase is incongruous with ethical legal behavior, he said.

“Who wants to go into law to practice law like this,” Stege asked, “unless your goal is to make a bundle of money and send your kids to private schools and the very best colleges?”

In his paper, Pollis does offer some remedies.

He argues that appointing “special masters” to resolve discovery disputes, and requiring the losing party to pay those fees, would discourage what he contends are pretrial abuses.

Pollis also suggests using summary jury trials, where lawyers summarize cases to juries who issue nonbinding verdicts that ultimately guide a settlement. Parties could reject those verdicts and move forward to discovery and a full trial, but at the risk of being accountable for their opponents’ attorney fees.

Pollis said detractors of his claims are likely to point out that the costs of those options are too high. He counters that his suggestion of shifting costs to the losing party addresses those.

But in reality, the greater issue, he contends, is getting lawyers and firms to even acknowledge the industry’s abuses of the system. He’s more concerned about the collective recognition of a problem existing than he is wed to the particular solutions he’s offered.

“With this, you’ve got the fox guarding the hen house,” Pollis said.

“The legal system is set up by lawyers for lawyers, and it’s a well-kept secret no one wants to embrace any kind of change because there is so much money to be made in keeping the system the way it is. Who has the incentive to take the steps necessary to bust this up?”

Correction

JJAn article on Patricia Shlonsky, Ulmer & Berne Cleveland partner-incharge, in the July 10 issue of Crain’s Cleveland Business incorrectly identified the name of the accounting firm, PricewaterhouseCoopers, where she worked. The same article misspelled the name of Sari Feldman, executive director of Cuyahoga County Public Library.

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CRAIN’S CLEVELAND BUSINESS

Opinion Personal View

Ohio electricity battles abound

By DICK MUNSON

Editorial

Reality hits A year ago this week, Cleveland was the center of the political world, as the Republican National Convention was set to open and formally launch nominee Donald Trump on his path to the presidency.

A lot has changed in a year — and we're not just talking about the big shifts in policy and style from Barack Obama to the current occupant of the White House.

Regardless of your feelings about the outcome of last November's election, Cleveland was an unambiguous winner in the immediate wake of the RNC. It earned glowing media coverage for the smooth logistics of the event inside Quicken Loans Arena and throughout downtown. The city's streets were bustling (and safe, thanks to a superb police effort), hotels were full, and the redesigned Public Square made a muchpraised debut from locals, guests and architecture critics alike for its beauty and functionality. The marketing communications campaign built to promote the city around the RNC won a Silver Anvil award from the Public Relations Society of America.

Fast forward to today, though, and some of the good vibes are gone — particularly as it relates to the two locations most central to the RNC's success.

A proposed $140 million renovation of The Q, with the cost split between the Cavaliers and the city of Cleveland and Cuyahoga County, has become a political hot-button and looms as perhaps the biggest issue in this fall's mayoral election. The most vocal opponent of The Q deal, the Greater Cleveland Congregations, was central to an effort to collect 20,000 signatures to try to repeal the city's commitment to use the admissions tax collected on ticket sales at the arena to help pay for renovations. The city has asked the Ohio Supreme Court to sort out the legal issues raised by the referendum process.

On July 7, though, there was another twist in The Q conundrum, as four faith organizations ended their association with Greater Cleveland Congregations over the group's tactics to

block the deal's financing. Antioch Baptist Church, Bethany Baptist Church, The Temple-Tifereth Israel and The Park Synagogue bolted because, as Antioch senior pastor Rev. Dr. Todd C. Davidson put it, "leaders within the GCC have adopted methods that we find to be damaging and counterproductive" to the stated goal of creating a community equity fund for neighborhood improvements.

For now, then, we have a situation where almost no one is happy: The Cavs have missed their hoped-for deadlines to get arena renovations started, community groups are splintering, and political sniping among mayoral candidates has only begun.

Meanwhile, on Public Square, the excitement over the $50 million remaking of the city's front porch has given way to (seemingly) mundane concerns about the flow of bus traffic.

But there was nothing mundane about the situation, as Public Square's closure to bus traffic on Superior Avenue after it reopened gave way to concerns about the costs incurred by the Greater Cleveland Regional Transit Authority in routing bus traffic around the square, as well as the possibility of a big fine from the Federal Transit Administration for failing to meet the project's grant requirements. (The original plan was for buses to go through the square, but that was scrapped, in part because of what Mayor Frank Jackson's administration considered security vulnerabilities.)

After much back and forth, the administration agreed to reopen the middle of Public Square to buses — complete with concrete barriers designed for safety that undoubtedly detract from the space's beauty. There's still plenty of activity on the square, but it's not quite the same place we saw in July 2016.

None of this, perhaps, is surprising. It's easier to create buzz from a big event than to maintain momentum over the long haul. Cleveland's national image certainly has improved from the pre-convention days, but image only goes so far. Reality has hit in a big way, and it has revealed a leadership vacuum in the city that's ripe to be filled. Soon.

Publisher and Editor: Elizabeth McIntyre (emcintyre@crain.com)

CLEVELAND BUSINESS

CLEVELAND BUSINESS

Managing Editor:

Scott Suttell (ssuttell@crain.com)

Sections Editor:

Timothy Magaw (tmagaw@crain.com)

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Ohio long has been a bellwether state. Politically, no state during the past 120 years has picked more winners of presidential elections. Ohio also reflects the nation’s diverse and evolving set of energy resources. In particular, this past year Ohio became ground zero in the electricity wars. Its utilities are seeking subsidies for uneconomic power plants, setting up a lively federalism debate about when states can encourage specific energy technologies. Meanwhile, Ohio manufacturers and customers are seeking to break up utility monopolies, provoking discussions about the role of competition in electricity markets.

Ohio’s largest utility, FirstEnergy, has frequently approached the subsidy trough, initially to bail out a nuclear reactor and several coal plants. The Federal Energy Regulatory Commission rejected that $4 billion plea, noting it would distort regional electricity markets. FirstEnergy then asked the Public Utilities Commission of Ohio for the same amount, but this time as free money that might help the debt-burdened utility improve its credit rating. When the PUCO approved only a small portion of that subsidy, FirstEnergy then asked for more subsidies to keep operating its two uneconomic nuclear reactors. The most recent effort faced fierce opposition and has stalled.

AEP has joined some of these subsidy appeals and recently led an additional, multi-utility legislative campaign to bail out two coal-fired generators built in the early 1950s. The potential cost of bailing out the power plants is high and long-lasting: Ohio manufacturers and consumers calculate this legislative proposal would cost businesses and families in Ohio “as much as $256 million (or more) per year in rate increases for decades.”

The bill likely will be revived in the fall.

The utilities also saw opportunity in the fast-tracked budget bill, trying to sneak in a provision that would give higher rates to utilities facing problems. Even the Legislative Service Commission admitted the provision would have led to electricity rate increases. Put another way, customers would have had to pay to correct the utilities’ bad business decisions, like building coal plants as natural gas prices were plummeting. The legislature fortunately removed this from the budget bill.

Ohio is a deregulated state, meaning electricity generation is a competitive enterprise. FirstEnergy and AEP initially embraced competition and were willing to rake in profits. But as natural gas has gotten cheaper, the utilities have sought protection for their now-uneconomic coal and nuclear plants. Of course, natural gas generators oppose such subsidies and argue for protecting competitive electricity markets. Consumer groups, most manufacturers and environmental advocates also oppose these subsidies.

Worried they might not obtain outright subsidies, AEP and FirstEnergy also are discussing ways to overturn Ohio’s deregulation laws, allowing them to regain monopoly control of Ohio’s electricity generation and receive guaranteed profits. In contrast, a unique combination of consumer groups – Ohio Manufacturers Association (OMA), Ohio Consumers Council and AARP – is seeking to strengthen electricity competition in the state.

The future of electricity markets is at stake in Ohio, and the results of these contrasting legislative proposals will influence emerging nationwide discussions about new utility business models. As electricity markets evolve, will power be controlled by riskaverse monopolies or by entrepreneurial competitors?

Rather than subsidize the old and dirty power plants, Ohio should invest in modern energy innovations. A smarter, more efficient energy future would embrace new grid modernization technologies, enhance the state’s economic development, cut power costs and reduce pollution. If state legislators and regulators embrace that energy vision, the fierce debates suggest that as Ohio goes, so will go the nation.

Munson is director, Midwest clean energy for the Environmental Defense Fund.

Write us: Crain’s welcomes responses from readers. Letters should be as brief as possible and may be edited. Send letters to Crain’s Cleveland Business, 700 West St. Clair Ave., Suite 310, Cleveland, OH 44113, or by emailing letters@crain.com. Please include your complete name and city from which you are writing, and a telephone number for fact-checking purposes.

Sound off: Send a Personal View for the opinion page to emcintyre@crain.com.

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Web Talk Re: Playhouse Square proposal by out-of-town architect disappoints Cleveland for generations has had a seeming desire to validate its decisions by using/hiring people from outside the city, while the professionals from Cleveland often become leaders and innovators only once they leave town.

The same seems to hold true far too often for creative services firms: They get plenty of appreciation and business from elsewhere, but are too often scoffed at by potential customers in town. Not always, of course, but seemingly more often here than comparable cities like Detroit, Pittsburgh or Columbus.

It would be one thing if this were an incredible, complex, innovative design (CWRU School of Business) but this isn’t: It emits from every pixel a lack of context for the historic square and the place upon which it sits, which demands either something that either fits in comfortably or that stands out in a way that accentuates this main thoroughfare.

Instead it sits there like the borg, a dull/shiny box that looks like something very creative — if it were being built in 1960. — ClevelandDave

The city has always had the design version of a masculinity crisis, eager to prove its muscle and vitality by erecting vulgar dreck like this one. To pick up from Ada Louise Huxtable’s description of the late World Trade Center, the proposed Playhouse Square building looks like a tombstone. Question: I understand Cleveland has a design review commission — does it DO anything? — Arnold Berke

What’s even more frustrating is that when you do get a knock-it-out-of-the-park design, it seems they can’t deliver, like the bridge they proposed from the Convention Center to the lakefront. It was striking, modern and would be something dramatic to see, but they were not able to pull it off.

— Matt Wallenhorst How foolish and short-sighted. There are so many talented architecture firms in Northeast Ohio.

— Roxanne Jaber

Re: Packaged food industry’s woes have J.M. Smucker Co. in a box Your blog post on Smucker’s is spot on, especially the comparison to a glacier melting a little every day. As someone who has tried to work with Smucker’s for years, that melting glacier is very real.

There are ways for these large “glaciers” to get those margins back, yet getting a seat at the table with a decision-maker is nearly impossible.

Mid-level people are afraid to make a decision for fear they’ll lose their jobs, and the real decision-makers think it’s beneath them to even have a conversation, so the glacier continues to melt.

We are seeing this with Kellogg’s, Campbell’s Soup, General Mills, etc. Ever try to find, let alone contact, a decision-maker at one of these companies?

There are so many layers of gate keepers it’s no wonder their only option is to keep buying other brands to add to their portfolio.

— David Marinac

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Focus

CLEVELAND METROPARKS AT 100

Cleveland’s gem that keeps giving Rocky River Reservation holds some of the first land acquired by the park system. (Cleveland Metroparks)

A century later, the Metroparks’ conquest has yet to slow down

By TIMOTHY MAGAW tmagaw@crain.com @timmagaw

It’s a bit unfair to ask Cleveland Metroparks CEO Brian Zimmerman to name his favorite reservation in the 23,000-plus-acre park system he’s led since 2010, but his answer is really quite simple: Rocky River.

That site holds 3 acres of land in the Rocky River Valley donated in 1912 by Cleveland brewer Leonard Schlather.

The reservation also lays claim to the first acres of parkland purchased by the burgeoning district.

“Absent of that, the park system would not look like it does today,” said Zimmerman, one of only six leaders of the system during its history. “You have to start somewhere.”

That modest acreage became the roots for a still-expanding, award-winning park system celebrating its centennial this month. In March 1917, newly passed state legislation provided for the “conservation of natural resources by the creation, development and improvement of park districts.” On July 23 of that year, probate judge Alexander Hadden appointed the first board of the Cleveland Metropolitan Park District.

In 1919, the park board made its first purchase, 3.4 acres along the Rocky River — a site that is now overlooked by a 30-foot-tall monument honoring William A. Stinchcomb, an engineer credited with developing the first plan for the park system and who would serve as its executive director for 36 years.

Today, the taxpayer-supported park system is an interconnected network of 18 reservations in 48 communities visited by more than 18 million annually. And without showing any signs of slowing, the Cleveland Metroparks is in the midst of one its most aggressive growth periods since the start of the mid-20th century, when postwar, suburban sprawl prompted the parks to acquire more land.

As the system eyes its next 100 years, it’s grappling with the same issues faced by other businesses and recreation options in the region — a competition for people’s time and resources.

Over the past several years, the park system has put a premium on what Zimmerman calls “making connections” — a phrase that could mean physically linking the properties it manages through new acquisitions and trails or, more tangentially, connecting the region’s population with their natural surroundings. Go-

The scenic Edgewater Park on Cleveland’s West Side added a new beach house this year. (Kyle Lanzer/Cleveland Metroparks)

Merwin’s Wharf, as seen from the “Good Time” boat on the Cuyahoga River, opened in the Flats in 2014. (Cleveland Metroparks)

ing forward, Zimmerman still sees gaps in the park system’s footprint. In particular, he points to spots on the city’s East Side in Cleveland Heights, Shaker Heights and East Cleveland.

“We never want to be off the pulse of what the community is looking for,” Zimmerman said. “Certainly, there’s been some pivot points. With any type of organization, if you don’t continue to adapt, you die. I think this agency has a done a very solid job of listening to the community, adapting to the community and then continuing to deliver to the community high-quality projects that affect people’s lives.”

The ‘practical dreamer’ When discussing the man often referred to as the father of the park system, one word generally arises: integrity. In his diaries, for one, Stinchcomb recounts a “warm discussion” during a mayoral campaign rally and then realizing afterward a few of his statements were inaccurate. The next day, he saw his adversary on the street, approached him and apologized for his missteps.

“That to me, right there in a nutshell, shows that this guy was a leader,” said Metroparks staff historian Judy MacKeigan, also the lead author and editor of “The 100 Year Trail,” a 244page, exhaustive dive into the park system’s history. “When he was right, he stuck to his guns.”

SEE PARKS, PAGE 14

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CLEVELAND METROPARKS AT 100

Q&A: Terry Robison

Director of natural resources, Cleveland Metroparks

T

helping plant trees and other plants, then doing some of these restoration projects. We’ve planted a few meadows; some we’ll probably keep because they provide good pollinator habitat. Others, we’ll let the trees move in for a little bit more natural regeneration. But you’re seeing it now. In 10 more years, people will start forgetting in certain places that it was a golf course. In 50 years, you’ll have to look hard to say, “Oh, I think that was a green.”

erry Robison always had an affinity for nature. It’s a passion that likely stems from time spent fishing and hiking with his family in a state forest in central Pennsylvania.

And though he never thought he’d land in Cleveland, it’s no surprise he’s made nature the focus of his career, rather than follow in the footsteps of his father, uncle and brother to become a dentist. At Cleveland Metroparks, Robison plays a critical role in the oversight, conservation and management of natural resources in the system’s 23,000-plus acres. Crain’s recently chatted with Robison about the ongoing push and pull over recreational use and conservation, and how those two elements of the parks’ mission coexist.

This interview has been edited for length and clarity. — Timothy Magaw In your role, how do you balance the seemingly competing roles of the park system — conservation and recreation?

In our park system, we like to talk about the 80-20 rule — about 20% of the park is developed with roads, paved trails and buildings, and 80% is wild. That’s a lot of land to manage and take care of. Balancing the needs of recreation and conservation can be a struggle. There are stressors on the park, and people are a big part of that.

For example, we often talk about the caring capacity for wildlife — if there are too many deer, they eat everything in the understory and have exceeded the caring capacity of the park. The same thing can happen with people.

When you have a trail that’s been beaten down or widened and every time we build a new trail, that’s a micro-fragmentation of the habitat.

Kyle Lanzer/Cleveland Metroparks What goes into those discussions?

When a new building or trail gets cited, our division is a big part of that.

We weigh whether to redevelop a site or go into a somewhat virgin area. But if we can build on an area that’s mowed and not full of trees, we’ll try to steer it in that direction. We can’t always make decisions that favor people. We have to think hard about what we have. It’s hard to get it back.

Once you disturb it, it’s never the same. The challenge is working with people and trying to make the right decisions. I compromise sometimes, and I know the benefits will be good for the public for their enjoyment and education of the outdoors.

had been a country club. What’s that been like?

When (Metroparks CEO Brian Zimmerman) told me about that, it was a surprise, and I was like, “Oh my God, here’s a Christmas present for restoration people.” The donor wanted it to go back to looking something like the North and South Chagrin reservation. Fortunately, the club didn’t do a lot of earth-shaping — it’s a pretty old golf course — so the potential was pretty high. We worked hard and were able to get a big grant from the Ohio EPA and a couple smaller grants to get started. It’s been exciting.

How long before it would look something like the Chagrin reservations?

You’re looking at 100 years to get some mature trees and forests.

We’re speeding it up a little by

The park system has also been involved into bringing developed sites back to their natural state like the Acacia Reservation, which

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I guess it’s fair to say patience is a big part of your job.

I estimated once that I’ve been involved in the planting of 20,000 trees in my lifetime. It’s a game of patience. I’ve gone back to some of those to see how big they are. Any time you get involved in nature, it’s a long-term thing. Even projects that get done in a few years, it takes time to see them mature.

What are some things that set this park system apart from others across the country?

We offer so much. All of our parks are different. That’s one thing I’ve tried to push. We don’t need to have all of the amenities in every park. That’s from a human fun standpoint and a natural resources standpoint. At one time, managers wanted all kinds of habitat in every place. That’s not right. You should want to go to North Chagrin for what it has and Bradley Woods for what it has.

How has the parks’ expansion along the lakefront changed your role?

There’s some really good habitat along the lakefront — some unusual

plants that only grow on those shores. We’ve tried to do a good job of letting managers know where those are so we can protect them.

The lakefront is also a bird drop-off point where they rest after migration. Jen Brumfield, one of our naturalists, is an internationally known birder and has recorded all kinds of species down there. It’s important to keep it green. The trees provide resting areas and have insects that are food sources for the birds traveling through. A lot of people want vistas, but we have to make sure we keep that forest.

How much of your job is focused on managing invasive species?

Quite a bit. We’re trying to keep our best areas good and slowing moving out from there and attacking things.

We’re trying to keep new invasive plants out. One of those is hydrilla, an aquatic plant. We got a grant from the Great Lakes Restoration Initiative to hire a person and a small crew to search for it. It chokes out bodies of water really fast. It outcompetes everything.

How has the park system changed since you arrived a decade ago?

One of the things is a lot more hikers are using the parks. We also know so much more about the park system than we did back then. There are a lot of rare plants still here, and a lot of people thought the park was so beaten up that there couldn’t be anything good. But there are some really nice, rare plants. There are some incredible bird species. We just know so much more. That makes us want to protect it even more.

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PA G E 13

CLEVELAND METROPARKS AT 100

World-class fishing lures visitors from afar

By D’ARCY EGAN clbfreelancer@crain.com

As the Rocky River cut its way through Cleveland’s West Side, it left behind a rich landscape that has since become a popular pathway that lures thousands of folks to hike, bike and stroll through the many miles of woods and fields. For those carrying a fishing rod, the urban waterway has become a world-class fishery for catching trophy steelhead trout.

Anglers from all around Ohio, the country and even the world make the pilgrimage to cast a line on the Rocky and Chagrin rivers in the Cleveland Metroparks. The amazing run of steelhead trout surging up the robust streams often escapes notice because the best steelhead trout fishing coincides with northern Ohio’s chilly winters.

A lure of the Rocky River is enhanced by its angler access, said Mike Durkalec, the park system’s aquatic biologist for a dozen years.

“Anglers really appreciate the parks provide about 30-plus miles of free-flowing Rocky River to walk and wade, and about 10 miles of the Chagrin River” Durkalec said. “It’s a very public fishery, unlike Europe, where the best trout rivers are often reserved for aristocrats and people of money.”

Most of the deep pools with trout are a short walk from a parking area, which spreads out fishing pressure.

“We have been able to create this

River guide Jeff Liskay casts for steelhead trout on a stretch of the lower Rocky River. (D’Arcy Egan for Crain’s)

wonderful fishery because we have support from the public we serve in the way of levies and a robust stocking program,” Durkalec said. “In addition to the state-stocked steelhead trout, we release thousands of rainbow trout in our streams and many lakes, as well as channel catfish and panfish.”

The Cleveland Metroparks has an early May two-day Kid’s Fishing Derby at lakes on both sides of Cleveland. The Family Fishing Fest on Oct. 14 at the Ohio & Erie Canal Reservation will feature golden trout to celebrate the park’s centennial.

Fishing tackle sales rep Jerry Darkes of Strongsville has been instrumental

in the growth of fly fishing for steelhead trout. He has hosted hundreds of fly-tying and casting clinics over the years, guided anglers, developed flies and tackle, and authored many magazine articles and several books, including “Fly Fishing the Inland Oceans: An Angler’s Guide to Finding and Catching Fish in the Great Lakes.”

“The Rocky River is a wonderful waterway for both rookies and experts,” Darkes said. “I’d rank it near the top of the world-class steelhead streams for a variety of reasons. There is plenty of access, and the Rocky is not super-fast, threatening water.

“While premier steelhead waters in

British Columbia, California and elsewhere have a relatively short season, the cold-water trout are often in the Northeast Ohio streams from mid-September through the middle of May. With a solid selection of park-approved fishing guides, it is easy to quickly learn the basics and hook up with a trout.”

Darkes calls on fly-fishing shops around the Midwest, including the Backpacker’s Shop in Sheffield Village and Chagrin River Outfitters in Chagrin Falls, keeping his finger on the pulse of the sport.

“Close to half of the money spent on fly fishing in our region is focused on steelhead trout fishing gear,” Darkes said. “That influence reaches well beyond the Cleveland area. Anglers in Columbus, Cincinnati, Detroit and even Chicago have made Northeast Ohio a destination for steelhead. I’ve guided West Coast anglers who came here specifically for our trout fishing.”

The trophy steelhead trout fishery in Northeast Ohio was created in the 1980s, and now the Ohio Division of Wildlife annually stocks about 400,000 year-old steelhead trout, called smolts, in the Rocky, Vermilion, Chagrin and Grand rivers and Conneaut Creek. The young, cold-water fish head to the cool, deep waters of Lake Erie to feed and grow, and begin to return in fall in an attempt to spawn in the river where they were first released.

In just a couple of years, the trout will have grown to about five pounds,

18 PARK RESERVATIONS

8 GOLF COURSES

a worthy foe for any fly-rodder. After a half-dozen summers of gorging on Lake Erie baitfish, many will have achieved trophy status of 30 inches in length and 10 pounds in weight.

Jeff Liskay of Avon Lake founded the popular Ohio Central Basin Steelheaders (OCBS) group in 1984 to bring kindred river anglers together to promote the steelhead trout fishery.

The group campaigned to have Ohio purchase the Castalia Fish Hatchery in Erie County and increase trout production, and then-Gov. George Voinovich agreed. The Cold Creek waters emanating from Castalia’s Blue Hole gave the program a major boost.

The OCBS and the park system will again host the Steelhead Expo on Sept.

30 at the Rocky River Nature Center.

Cleveland’s urban anglers might never wet a line on the hallowed trout waters of the Yellowstone, Gallatin and Boulder rivers in Montana, but they do appreciate having their own world-class trout fishery.

“In the last decade, or so, there has been a 10-fold increase in the popularity of steelhead trout fishing in Northeast Ohio,” said Liskay, a heavy equipment operator who transitioned over the years into a fishing instructor, guide and pro staffer for elite fly-fishing companies such as Patagonia, Scott Fly Rods and Scientific Anglers.

“That has allowed me to fish all over the world, and to appreciate the waters I have close to home, especially the Rocky River,” Liskay said.

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CLEVELAND METROPARKS AT 100

PARKS

CONTINUED FROM PAGE 11

Stinchcomb’s integrity and persistence — a “practical dreamer,” MacKeigan said of him — are what ultimately brought the park system to fruition. The christening came in 1917, but Stinchcomb’s idea for an outer chain of connected parks was born more than a decade before. So it goes, the now-ubiquitous “Emerald Necklace” nomenclature didn’t appear on any park literature until the 1950s, and its origin remains a “mystery for the ages,” MacKeigan said.

By 1920, the park system owned more than 100 acres in Rocky River and Big Creek. A decade later, it had secured 9,000 acres in nine reservations, and the conquest of connecting those reservations and acquiring even more land continues even today.

The park’s evolution into the institution it is today didn’t come without hardships. In its earliest years, an ultimately unsuccessful lawsuit questioned the district’s ability to levy taxes. Also, the park system was not immune to the challenges of the Great Depression — Stinchcomb even took a pay cut so the system could hire more day laborers, MacKeigan said.

However, it wasn’t until the 1980s that the first major scandal unfolded at the Cleveland Metroparks organization. Lou Tsipis’ tenure as executive director of the parks from 1980 until 1988 appeared to be going smoothly, at least as well as the public could perceive — or, as The Plain Dealer characterized it, scandal had hidden beneath a “veneer of green leaves and exotic Chinese animals.” But reports of favoritism and nepotism emerged in the local press, and Tsipis ultimately resigned. Tsipis had been accused of getting rent-free or low-cost living arrangements for relatives and friends, and unilaterally awarding of lucrative

Bedford Reservation covers more than 2,200 acres and features Tinker’s Creek. (Kyle Lanzer/Cleveland Metroparks)

concession contracts. Tsipis was indicted in 1991 on 56 felony counts.

“The system and its decades of carefully cultivated reputation for excellence have taken severe blows recently and may be in for more before the troubled times are past,” read an editorial published in The Plain Dealer shortly after Tsipis’ resignation.

The board of commissioners hired Vern Hartenburg, a former parks director in Minnesota, to lead the cleanup effort and ultimately restore faith in the park system — something he achieved a few years after taking the executive director job. Cleveland Metroparks won the National Gold Medal in Park and Recreation Management in 1994, 2001 and 2007

during Hartenburg’s 21-year tenure.

The park system won it again in 2016 under Zimmerman.

Spreading seeds Zimmerman inherited a healthy organization when he took over in 2010, but the board and the powerful probate judge who appoints the commissioners — Anthony J. Russo — had an important piece of property on their minds for further expansion: the lakefront. In many ways, it was one of the final pieces of connecting the Emerald Necklace.

“When he came on, there was no mistaking that was goal No. 1,” said Bruce Rinker, president of Met-

roparks’ board of commissioners and a shareholder at Mansour Gavin LPA. Lake Erie’s shores, while scenic, haven’t seen the same sort of development focused on recreation as other parts of the region for myriad reasons. Throughout Cleveland’s history, industry planted its roots along the water, making it unfit for recreation and habitation because of environmental concerns. As the city built up its infrastructure in the 20th century, the bulk of it — highways, utilities and even an airport — was placed along the lakefront. However, today the lake and Cuyahoga River are focal points for millions of dollars in public and private investments, and the Cleveland Metroparks has taken the lead on the recreational component.

“We knew the lake was there, but there were so many obstacles that people let their old DNA keep perpetuating the story about industry,“ Zimmerman said.

In 2013, the park system took the lead on managing several hundred acres of prime waterfront real estate the state had controlled for years, and in 2014 opened Merwin’s Wharf, an eatery along the river in the Flats.

Moreover, an evolving network of trails is taking shape in old industrial pockets of the Flats, making it easier than ever to explore the city’s heritage and access its waterfronts.

Since the Metroparks’ lakefront charge, Zimmerman said, the “flare and the aura around the lakefront parks is very different.”

Shortly after the Metroparks-led takeover of portions of the waterfront, Cuyahoga County voters overwhelmingly approved with 70% of the vote increasing their tax bills with a 10-year, 2.7 mill tax — an increase from the 1.8-mill rate. Today, levy proceeds make up about 60% of the revenue in the park system’s roughly $103 million budget.

The proceeds were expected to help fund capital improvements at its lakefront properties — most notably at Edgewater Beach on the Cleveland’s West Side. Just recently, the park system cut the ribbon on a new beach house on the Edgewater property that boasts a bar and concessions.

The Metroparks’ urban charge is an interesting one, given the fact that for much of its history the park system had been focused on expanding outward from the urban core. But now that people — particularly young professionals — are taking a renewed interest in Cleveland’s city center, the park system is following suit.

“We’re looking more closely at the built environment that’s been left behind,” Rinker said. “We see that as a real opportunity.”

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CLEVELAND METROPARKS AT 100

Cleveland zoo is a conservation leader

By LYDIA COUTRÉ lcoutre@crain.com @LydiaCoutre

Cleveland’s zoo came under Cleveland Metroparks management in 1975, just as the missions, vision and culture of zoos across the country began to evolve.

Before the ’70s, zoos were largely menageries of animals, often plucked from the wild. But federal policies, introspection among zoos and shifting societal awareness soon began to change zoos’ missions. “Zoos viewed themselves internally as being primarily education and conservation organizations,� said Christopher Kuhar, executive director of Cleveland Metroparks Zoo. “And what happened a little bit more slowly is the public identifying that, and us changing our physical appearance.�

Old exhibits with metal bars and concrete were gradually — and then rapidly — replaced with bigger, more complex, natural exhibits. The missions of zoos across the country emphasized a stronger focus on conservation, education and animal welfare, he said.

Today, the 135-year-old Cleveland Metroparks Zoo is a leader in its institutional commitment to conservation, said Shelly Grow, vice president of conservation and science at the Association of Zoos and Aquariums, a Silver Spring, Md.-based nonprofit focused on conservation, education, science and recreation in zoos and aquariums. She points to the Cleveland zoo’s financial investment, staff experts, conservation department and conservation focus.

Steve H. Taylor, Cleveland Metroparks Zoo director emeritus, gives a

The 135-year-old Cleveland zoo has been managed by the Metroparks for 42 years. (Brian Hunsaker)

lot of credit to the park system for where the zoo is today. Without the 1975 milestone, the zoo — previously run by the cash-strapped city — would have “entirely suffered,� he said. “Metroparks really saved the zoo.

There’s no question about it,� said Taylor, who led the organization from 1989 to 2012.

In turn, the zoo is a “huge part� of Metroparks’ work, said Metroparks CEO Brian Zimmerman. It is a major destination point in Cleveland and can be a visitor’s first interaction with the Metroparks. “This zoo is in existence because of the will of this community and their relationship with the animals,� Zimmerman said.

Though most zoos are run by nonprofits, Cleveland’s is one of the few government-run zoos in the country, Taylor said. The model is a great pub-

lic-private partnership that has been studied by other government agencies, he said.

Path to conservation The zoo’s first modern exhibit, the RainForest, was a major turning point for the organization, Taylor said. It opened in 1992 with a strong educational component that taught visitors about the disappearance of rainforest lands and allowed people to contribute to conservation programs.

In the RainForest’s first full year, attendance went from about 800,000 people to 1.4 million visitors. The project had been discussed for years with ballooning cost estimates, and a management scandal that concluded with the resignation in 1988 of the park district’s executive director threatened the project’s viability.

However, the parks’ new executive director, Vern Hartenburg, and Taylor ultimately pulled it off. “When it opened, it really sort of changed the course of the zoo,� said Taylor, who had previously served as director of the Sacramento Zoo and worked at zoos in San Francisco and Los Angeles.

When Taylor arrived, the zoo had no veterinarian, no conservation department and few zoo professionals — all of which he worked to add.

The success of the new themed exhibit, Taylor’s professional zoo experience, and the stability and resources Metroparks brought to the table allowed the zoo to professionalize and transform into a conservation agency, he said.

Conservation continues to be an growing focus at the zoo, a trend in line with zoos across the country. In 2016, the Association of Zoos and Aquariums’ more than 230 members spent about $216 million on conservation efforts impacting animals and habitats in the wild — up from $150 million just five years prior.

The next step for the ongoing conservation work at Cleveland Metroparks Zoo is integrating it into the guest experience, said Kuhar, who has been at the helm since 2013.

The exhibits should educate guests about animals, encourage conservation and action, and get visitors excited about wanting to help animals. “The whole idea of the guest experience now is to not only make it fun, but to inspire some level of action,� he said.

Visitors could see some of the first stages of bringing more visibility to the zoo’s conservation work in the Asian Highlands exhibit, slated to open next year, featuring snow leopards, amur leopards and red pandas.

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“We’ve been doing international conservation for over 20 years, and we’re continuing to grow those programs and save species like gorilla and giraffe,� Kuhar said. “Doing more of that, providing access to the conservation programs so people can learn about what we’re doing and sort of experience it, those are all goals for us in the future.�

Supporting the zoo in reaching those goals is the Cleveland Zoological Society, which celebrates its 60th anniversary this year. Since the late 1990s, the society has provided close to $70 million to the zoo — a little more than half is for capital improvement, with the rest allocated for general operating support, said Liz Fowler, executive director of the society, a nonprofit support arm for the zoo.

As the zoo evolved, the society also grew, receiving its largest donation ever in 2015: a $2.1 million gift from Steris Corp. CEO Walt Rosebrough and his wife, Carol, which supported the $4.1 million tiger exhibit bearing the couple’s name that opened in 2016. “The zoo society and its board of trustees are truly enthusiastic about Chris Kuhar’s leadership and vision,�

Fowler said. “It’s very exciting to see him pull forward the commitment to international wildlife conservation, pull it forward and make it front and center of all that we do.�

Metroparks is a “dynamic and strong� parks system that, in combination with the support of the zoo society, has helped offer continuity in stewarding the zoo, “one of Cleveland’s best assets,� Fowler said. “The stability that the Metroparks has provided has allowed the zoo to grow and prosper,� Kuhar said. “Without that, I don’t know where the zoo would be.�

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CLEVELAND MET

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1911: State legislation allows for the creation of county park boards, which can accept land donations but not raise or spend funds for park use. The County Park Board forms the following year.

1912: Cleveland brewer Leonard Schlather donates 3 acres of land in the Rocky River Valley to the park board.

1915: The County Park Board hires Boston landscape architect Frederick Law Olmsted Jr. to work with William A. Stinchcomb on a general plan for the development of a countywide park system. During his career, Olmsted’s work included projects in Acadia National Park, the Everglades and Yosemite National Park.

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1929: The park Squire’s Castle district grows to 9,000 acres and is ultimately organized into nine reservations. Also this year, the Ohio Supreme Court rejects a taxpayer suit that questioned the district’s right to levy taxes.

1939: The 1930s see the opening of a handful of trailside museums and other properties in the park system. In 1939, despite economic turmoil and a looming world war, voters approve a renewal of a park development levy.

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Squire’s Castle in the North Chagrin Reservation and land in Hinckley that later becomes a 95-acre lake. The park system’s first golf course — Big Met — also opens in Rocky River.

• Microsoft Training for IT Professionals • Project Management • Web Design William Stinchcomb was the first director of the park system.

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1917: In March, the state Legislature passes a bill providing for the “conservation of natural resources by the creation, development and improvement of park districts.” In July of this year, probate judge Alexander Hadden appoints the first board of the Cleveland Metropolitan Park District.

1919: The park board makes its first purchase: 3.4 acres along the Rocky River — a site that is now overlooked by a 30-foot-tall monument honoring Stinchcomb that was dedicated in 1958.

1921: Stinchcomb signs on as the parks’ first executive director, a role he would hold for 36 years. In 1939, a local newspaper said, “Bill Stinchcomb and the park system are one institution” because of the former city engineer’s persistence in developing the park district.

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1926: The park system acquires a number of hallmark properties — the Huntington estate in Bay Village,

1942: World War II takes a toll on the park system’s naturalist programs because gasoline and tire rationing limit the public’s access to the parklands.

The programs’ popularity resumes in 1946 after the end of the war.

1951: The expansion of federal and state highway programs threatens to take away critical land from park reservations. Original plans for the Ohio Turnpike, for one, would have taken 75 acres of park district land from the Rocky River Reservation south of Berea. After months of negotiations, the route is moved slightly south.

1957: The park’s levy renewal fails for the only time in the district’s 100-year history — something that could be attributed to ongoing controversy over whether the park district should continue leasing land at Sleepy Hollow and The pachyderm Manakiki golf courses to private building at the zoo in the ’60s clubs. The next

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CRAIN’S CLEVELAND BUSINESS

AND METROPARKS AT 100

rst century of the parks year, the park board votes to terminate the private lease at Manakiki. A new public course — Shawnee Hills — is built and opens in May 1959 at Bedford Reservation.

1957: Harold W. Groth becomes the park system’s second executive director, replacing Stinchcomb.

Stinchcomb dies in early 1959.

1961: A report from the Regional Planning Commission Groth — titled “New Gems for The Emerald Necklace� — calls for the continued expansion of the park system because of the ongoing population surge. Notably, the commission recommends an emphasis on “nature-related� activity rather than extending into municipal recreation. The report recommends acquiring 8,400 more acres by 1980.

1967: Newly appointed chief of park police Lou Tsipis begins a transformation of his department. The name is changed to the Metropolitan Park Rangers. A ranger academy is opened to fulfill state training requirements.

The first class graduates in 1968.

1968: The park system assumes ownership of the Cleveland Zoo. Cleveland Metroparks starts to manage the zoo’s operations by the mid-1970s.

1974: Harold Schick becomes the park system’s executive director. He is the first in the job with a professional park management background.

Both Groth and Stinchcomb had been civil engineers.

1975: The park system unveils its new logo, which is still in use today, and simplifies its name to Cleveland Metroparks rather than the Cleveland Metropolitan Park District.

1980: Longtime parks employee Tsipis becomes the district’s fourth executive director. The park makes several expansions and renovations during his tenure, but allegations of corruption — nepotism and forgery, for instance — lead to his resignation in 1988.

1983: The park system moves its administrative offices from downtown to the former zoo administration building. It is the first time the parks’ headquarters are on park-owned land.

1988: Vern J. Hartenburg, who led a suburban park district in Minnesota, is selected to lead the Cleveland Metroparks after a national search.

Hartenburg He is tasked with restoring trust in the park system. He boils down the park’s mission to three prongs — conservation, education and recreation.

1992: The $32 million RainForest opens at the Cleveland Metroparks Zoo under the direction of new zoo director Steve Taylor. The attraction leads attendance to spike more than 50% to roughly 1.44 million visitors the first full year it is open. The project started during Tsipis’ tenure but had been under constant conflict.

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Cleveland Metroparks

An artist’s rendering of the zoo’s RainForest project 1995: The park system unveils a new master plan, which notes the park’s “deteriorating and aging� infrastructure.

In addition to recommending several upgrades, the report calls for the park system to have a presence in old industrial areas of the city, including lands along the Cuyahoga River.

Cleveland Zoological Society is proud to be the nonprofit partner of Cleveland Metroparks Zoo, part of the nation’s best park system that has been connecting people with wildlife and conserving the natural world for 100 years.

1999: The Ohio & Erie Canal Reservation and CanalWay Visitor Center open and forge the Metroparks’ path into Cleveland’s more industrial locales.

2004: The new park ranger headquarters and park operations building open in the Rocky River Reservation on the grounds of an old archery field. Also this year, the Sarah Allison Steffee Center for Zoological Medicine opens at the zoo.

2010: Hartenburg retires, and the system hires Brian Zimmerman from the Milwaukee County Parks system to become the sixth executive director.

Anthony Russo, a new probate judge, plays an active role in Zimmerman’s hiring, in particular by stressing the need for the parks to make moves on the lakefront. Zimmerman’s title ultimately will change to CEO. 2011: The zoo’s $25 million African Elephant Crossing opens. It is the zoo’s largest expansion since the RainForest.

It sits on 5 acres, and at 260,000 square feet quadruples the size of the former indoor and outdoor space for the animals.

2012: The park system moves forward along the waterfront, acquiring what is now called Rivergate Park. The site soon boasts a bevy of recreational water activities and, as of 2014, Merwin’s Wharf, a park-owned restaurant.

2013: The state turns over management of Edgewater Beach, East 55th Street Marina, Gordon Park, Euclid Beach, Villa Angela and Wildwood Marina to Cleveland Metroparks. Before the park took over, these properties, for the most part, had fallen into disrepair and weren’t being maintained.

In 2017, the park system opens a stunning new, two-story beach house at Edgewater on the city’s West Side.

ClevelandZooSociety.org

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AKRON

Local food trucks are finding new avenues

By JENNIFER KARPUS-ROMAIN clbfreelancer@crain.com

Food trucks are again lining up in downtown Akron throughout the summer for the city’s Cascade Cucina event on Wednesdays.

While that no doubt brings delight to food lovers and the business operators alike, street events only tell part of the story as an increasing number of mobile food operations see private events as a big source of income.

So while operators are grateful that the city is seriously looking at relaxing its stringent food truck fees, many have come to realize the public events aren’t the only game in town.

“It’s not the same old food truck,” Larry Suter, who owns North Canton’s Lobster Louies Restaurant and food truck with his wife, Kelly Campbell, said about the increase of event opportunities.

“It’s high quality cuisine now, and I think that’s why you’re seeing more weddings and higher-end functions using food trucks because … what food truck did you used to be able to get lobster out of?”

Juan Gonzalez, owner of Cuyahoga Falls-based Wholly Frijoles Mexican Street Foods, said when he started out five years ago, he participated in a lot of public events. When he entered his second year, he saw more large-scale catered events, including weddings.

“Now we are probably doing 50% public events and the other 50% is at weddings or graduations,” Gonzalez said.

Under the current laws, food trucks must pay a $1,750 fee to line the streets in downtown Akron, on top of application and health-andsafety fees.

For the city-sponsored Cascade Cucina events (which technically isn’t on the street), Akron charges only a $35 fee, the operators said.

Wholly Frijoles Mexican Street Foods is among the trucks at Akron’s Cascade Cucina on Wednesdays during summer, but the operation, and others, are finding business at private events. (Shane Wynn for Crain’s)

Gonzalez, who avoids downtown Akron on days other than Wednesdays, and others have said that the high fee definitely factored into their business plans.

“The city does not charge a heavy fee for Cascade Cucina on Wednesdays,” said Shannon Brents, owner of the Akron-based Slop Truck. “I have not registered to park in the Akron downtown area in the past because of the ridiculous fee.”

Suter agreed that the fees drive him to different locations. And Judy Neel, who co-owns Norton-based Stone Pelican Rolling Café with her husband, Jeff, said the fees shifted her business focus.

Under Akron Mayor Dan Horrigan, the city seems to hear what own-

ers are saying, and the Cascade Cucina event appears to be a first step.

Horrigan is looking at changing the 2014 ordinance that established the steep fees.

He created a committee that met for the first time in mid-June to provide input as his administration works to put a revised ordinance before City Council.

“Mayor Horrigan asked our economic development office to pull the discussion group together to review the ordinance and make recommendations for improvement,” James Hardy, deputy mayor for administration, said.

“Akron City Council has representation in the group, as does the Downtown Akron Partnership, food

truck operators, restaurant owners, and other community stakeholders.”

Hardy said Horrigan wants to introduce a revised ordinance sometime this year.

New directions While a change in the ordinance is something food truck operators are hoping for, in the meantime, they have to keep their businesses humming, and private events have become a welcome stream of income.

These days, it’s not uncommon to see food trucks catering everything from birthday parties to, yes, even weddings.

One of the greatest benefits of private events is that operators know

exactly how much food to prepare, whereas public events can be a guessing game, Gonzalez said.

Catering private events also helps keep revenue streams up in the cold, winter months when no one wants to stand in line and dine outside on their lunch hour.

Stone Pelican has been in business for six years, and the Neels have seen the evolution of the mobile food industry.

“We were pretty much totally a street vendor when we started,” Judy Neel said.

But the Neels quickly moved from the street to lunch at local businesses because they saw a perk in a captured audience.

Like Wholly Frijoles, Stone Pelican’s business is now split equally between public and private events.

“Catering is advantageous in that this Ohio weather will not impact the event when it’s private,” Judy Neel said, who added Stone Pelican is booked almost every weekend in the summer.

“We’ve learned that … just sitting on the side of the road for four, five hours, it doesn’t work,” Jeff Neel said.

Most food truck owners expect the private event segment to continue to grow.

“The private catering probably didn’t really didn’t take off, I would say, for two to three years,” said Judy Neel.

Food trucks appeal to party throwers because they are self-contained.

“Usually every weekend we have either a wedding or a graduation party or a block party,” she said.

“We’ve done baby’s first birthday party, whatever brings people together.”

Slop Truck owner Brents said that couples getting married these days are looking for something fun.

“Tradition is kind of giving way to the new. ... I see the food truck industry growing for catering,” she said.

StartupBus hopes to help drive entrepreneurs

By DAN SHINGLER dshingler@crain.com @DanShingler

Akron’s hoping to get some more successful startups – by bus.

Thanks to strong local support, the city is again sending a bus of wouldbe entrepreneurs to the annual StartupBus competition. This year, the “Shark Tank”-style event is being held Thursday-Friday, Aug. 3-4, in New Orleans.

The actual event starts on Monday, July 31, and like a lot of road trips, the ride is really the thing, said Ian Schwarber, a former participant who went on to found ALTITUDE Strategy, an Akron consulting firm for entrepreneurs and innovators. Before that, Schwarber was also working with aspirational business owners at the University of Akron’s Experiential Learning Center for Entrepreneurship & Civic Engagement, where he was a co-founder and research director.

“It’s not about the competition.

What you really win are the relationships and the experience,” Schwarber said of the event.

He and others describe the bus trip as a three-day boot camp of in-

tense work, networking and preparation for not only the two days of competition in New Orleans, but for a life of entrepreneurship afterward.

It works like Schwarber this: About 20 people — as of press time, a roster had not been released — will board the bus in Akron on July 31. They know they’re heading to New Orleans, but they won’t know where they will go along the way. Because each bus in the competition must spend three days on the road, the route will be anything but direct and will make stops at businesses, support organizations and to meet entrepreneurs along the way.

But most of the time, participants will be on the bus, using their time and forced proximity to develop business plans and prepare their pitches to a panel of investors and established entrepreneurs who will judge them in New Orleans over two days of competition.

The winner gets mostly pride, but those who don’t win still often succeed, Schwarber and others say.

For example, Akron-based Wastebits — an internet-based company that is a sort of matchmaking service for trash haulers, landfills and others who are in or who use waste management services — was formed by a group that rode the bus in 2012.

Even though the group didn't get past the semi-final round of the competition, its idea ultimately worked and resulted in a company based in downtown Akron that now employs 25 people.

“Our entire founding team was on the bus, with the exception of me. I was home adding customers,” Wastebits CEO Dan Collins said.

Collins said he encourages entrepreneurs to take part because he knows from talking to his co-founder, Ray Lewis, and others who were on that trip how valuable it was to them and how valuable it still is in the tech arena.

“If you’ve ever thought about starting your own business and becoming an entrepreneur, this is a crash, fourday course in how to build a company. It does a great job of preparing you for what that’s like, and for the hard work that comes with it,” Collins said.

He said the benefits don’t end there, either, as he’s seen participants

go back again and again to not only the experience they gained on the bus, but the contacts.

“The StartupBus network is second to none. They call them ‘busepreneurs,’ and a lot of them are at major companies now, from Google to Amazon to Apple, all the way down to folks who are continuing to work for small startups,” Collins said.

That’s also why the Hudson-based Burton D. Morgan Foundation, which has a mission of supporting entrepreneurship throughout the Northeast Ohio region, is sponsoring this year’s trip, as it did last year, with a $15,000 grant.

“StartupBus delivers a unique opportunity for entrepreneurs to deploy their skills with like-minded peers during the intense learning experience that unfolds in the context of the trip, competition and related events,” foundation CEO Deborah Hoover said.

“Our Northeast Ohio entrepreneurial ecosystem is an ever-evolving network that has important lessons to share with others, but we also appreciate the cross-pollination that occurs when entrepreneurs come together from all over the country.”

Akron will compete with groups from New York, San Francisco, St.

Louis, Tampa, New Orleans and Mexico City.

Ohio is a hot spot for StartupBus activity. The state has sent a bus for the past four years, with the last two coming from Akron. And the co-directors of this year’s national competition are Wastebits’ Lewis and Lakewood resident Will Yaworsky.

Yaworsky, a conductor on last year’s bus and a rider before that, said this year’s teams can expect three days of nonstop work, probably some frustration, an education and even some fun.

“Designers will be working on designs. Programmers will be trying to program and complaining about the Wi-Fi,” he predicted, all while rolling down the highway with 3D printers humming away.

Riding and conducting the bus helped Yaworsky prepare for his business, which is contract software development, he said, but directing the entire competition with seven buses, about 150 participants and a big competitive event is a whole other thing.

“I think being a director might prepare you for a C-suite sort of job,” he said.

But for now, he said, “I’m just trying to get through August.”

CRAIN’S CLEVELAND BUSINESS

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PA G E 19

Project aims to restore Liberty Textiles Building

By STAN BULLARD

Willoughby’s bid for credits for Terminal Tower on Public Square was ranked 74 by the state scoring teams. sbullard@crain.com Millennia Cos. of Cleveland, 75 Public @CrainRltywriter Square, respectively, scored 79 in its Two factors have prompted the third bid for the state aid.

Thomas Yablonsky, executive diKassouf family to undertake a revitalization of its Liberty Textiles Build- rector of the Historic Warehouse Dising, 1277 W. Sixth St., after a nearly trict Development Corp. and executive vice president of Downtown 30-year wait.

First, Joseph Kassouf, the son of Cleveland Alliance, said the combilongtime parking lot owner-operator nation of constructing apartments and downtown Cleveland property and rehabilitating the old building investor James Kassouf, said rents allowed the project, which he cononly recently have reached the point siders “tremendously significant for where constructing apartments West Sixth,” to snare the state tax makes sense. Second, the family de- credits. Realty developers prize the cided to drop a long-held dream of credits because they help them raise installing a boutique hotel in the Lib- more funds to finance construction.

Moreover, Yablonsky is not minierty, which dates from 1890.

“The Cleveland hotel market is sat- mizing the impact of putting the urated,” Joseph Kassouf said, “while long-empty Liberty Textiles Building demand by people to live in down- back into service, this time as apartments, to favor the new stuff. town Cleveland is strong.”

“It’s a high Victorian design,” A design by Sandvick Architects, preservation specialists who have Yablonsky said. “It’s an architectural their office in a restored building ad- jewel.”

Joseph Kassouf said the plan calls joining Liberty, allowed the company to create a more viable project, for the attached new building to Joseph Kassouf said, with a plan that climb five floors while the Liberty is allows building new apartments only four stories high, thanks to Libwhile letting the family retain the 100 erty’s tall ceilings of around 19 feet.

The first floor on West Sixth will inpublic parking spaces of the existing lot by incorporating them in a two- corporate a total of 7,000 square feet floor garage that will also provide of first floor retail space.

“We won’t have a bar there,” Jodedicated parking for tenants of the seph Kassouf said, “but a restaurant apartments.

The approach is, literally, a win- that will be open longer hours bening one, and provides the family cause it has a bar.” A drawing Kassouf with a third reason the rehabilitation displayed of the proposed project shows uses such as a bakery and othof the building may finally fly.

The proposed $25 million project ers in at least five storefronts. Final won a nearly $2 million allocation of numbers, along with the number of Ohio Historic Preservation Tax Cred- suites, are in flux.

Yablonsky believes that if the Kasits in the highly competitive 18th round of the program. The Ohio De- soufs bring the project to fruition, it velopment Services Agency and Ohio will create a new phase for the street History Connection jointly an- as primarily a home for neighbornounced the award June 28. The state hood services and housing. He mainawards credits based on a scoring tains its reputation as a rough-andmethod that reflects the size of the tumble bar district is unjustified project, its jobs impact and potential because most of the financial investeconomic impact on the surrounding ment in it has been in terms of rehaarea and others. Liberty scored 94. Al- bilitated housing or offices. Joseph though Liberty sought a smaller tax Kassouf is aligning himself with efcredit, it bested larger buildings by forts of other West Sixth property bigger realty owners that did not snare owners to diversify the street’s offerwhich now include Cathy’s Ice aid 22 in the same Group of ings,BUSINESS PAGE μ JULY 17,round.

2017 μ K&D CRAIN'S CLEVELAND

Joseph Kassouf (right) is leading his family’s efforts to restore the Liberty Textiles Building, 1277 W. Sixth St., to active use in a $25 million project. The building, dating from 1890, is at left. (Stan Bullard for Crain’s)

“The Cleveland hotel market is saturated, while demand by people to live in downtown Cleveland is strong.”

— Joseph Kassouf

Cream shop, Insomnia Cookies and offices in retail space.

For Joseph Kassouf’s part, he’s focused on the redevelopment project.

He said it will be designed so the second-floor units have walkout patios, and an interior courtyard would be built atop the parking garage. Moreover, floors above the courtyard will also boast balconies.

“We can’t do balconies on the front side of the Liberty building because we plan to use the (state and federal preservation) tax credits,” he said.

Taking time to prepare construction drawings means yet-to-benamed contractors may start in 2018 at the earliest, he said. Financing for the project also has to be secured.

Suites may be available in 2020.

Although the Kassouf family’s Metro Parking Systems has operated through the years, the Liberty project is its first venture since contributing other West Sixth Street buildings it owns to Landmark Management’s Grand Arcade project at 408 W. St. Clair Ave. in 1992.

One of the other Kassouf projects was a joint venture it undertook in 1990 with real estate developer Ted Sahley to redevelop the Johnson Block as contemporary retail and office space with the aid of a U.S. Urban Development Action Grant, a now-defunct program that aided cities. The Kassoufs bought out the Sahley firm’s interest in the complex at 1352-1392 W. Sixth St. in 2015 for an undisclosed amount. The Kassouf family’s parking business is also housed in the Johnson Block, which dates from 1880, along with tenants ranging from Starbucks to Adcom Joseph Kassouf is also enjoying living in downtown Cleveland. The 30-year-old said he moved to the Flats two years ago and now lives in the Warehouse District because he enjoys the city’s vitality and it made it easier to oversee day-to-day operations of the parking business. He said his father was out of the country and would not be available to discuss the project with Crain’s Cleveland Business.

“We want to do more real estate development in Cleveland,” Joseph Kassouf said. “The Warehouse District is now like SoHo. Downtown Cleveland Alliance does a great job keeping it clean and handling security. The time is really right for this now.”

Yablonsky sees the younger Kassouf as critical to the family making a go of what he believes it views as a legacy project. The younger Kassouf is on the ground in town. The elder Kassouf, who Yablonsky has known since they were preteens in Parma, divides his time between Cleveland and Beirut, Lebanon.

“Joe Kassouf has shown himself to be an active stakeholder in the district,” Yablonsky said. “He has met with other developers about their plans and shared his ideas. He’s involved.”

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J U LY 17 - 2 3 , 2 017 |

CRAINâ&#x20AC;&#x2122;S CLEVELAND BUSINESS

THE LIST

Assisted- iving Centers (e cludes CCRCs) Ranked by number of residents

TH S YEAR

1 2

FAC

TY AME (1)

oodside Senior iving 9 ockside oad Bedford 39 / oodsideseniorliving.com

O. OF RES DE TS U TS (2)

TOTA STAFF R S P S (3)

MEMORY CARE RESP TE OTHER AME CARE SER CES

9 9

iggins Place (4) Cedar oad Beach ood 3 / igginsplace.org

3

T ES

PROF T STATUS

Independent living available

profit

Social programs and e cursions lifelong learning religious services hour emergency assistance nursing support transportation kosher meals housekeeping beauty barber shop art and e ercise studios media center movie theater card areas

nonprofit

33

Menorah ark ancy Sutula

33

Capital Senior iving effrey night

3

The Harbor Court 9 Center idge oad ocky iver 3 /theharborcourt.com

Staff hours a day continuum of care that lets residents age in place privacy and the freedom to live the ay residents choose in comfortable surroundings

profit

4

Stone ardens Assisted iving (4) 9 Cedar oad Beach ood 9 /Menorah ark.org

mergency call system onsite security onsite physician pharmacy kosher meals social activities transportation housekeeping beauty/barber salon nutrition counseling massage therapy ice cream parlor gardens art studio movie theater

nonprofit

5

Rockport Senior iving 3 Center idge oad ocky iver 3 /rockportretirement.com

Courtyard beauty shop chapel family room library pool table free Wi i housekeeping laundry services dining room ith chef prepared foods hour staff on site daily activities and e ercise

profit

6

The ardens at estlake 9 Detroit oad Westlake 9 9 /gardensat estlake.com

ge In lace stay in same apartment and add services as needed all apartments certified for assisted living independent living available until services are needed

profit

7

The eils 9 Chillicothe oad Chagrin alls 3 /the eils.org

9 3

ll private suites onsite / nurses and caregivers assistance laundry and other tasks programs and activities

nonprofit

8

Brighton ardens of estlake 9 Center idge oad Westlake /sunriseseniorliving.com

9

9

St. Augustine Health Campus - Assisted iving at the Towers ake ve. Cleveland 3 /staugministries.org

9 99

Mulberry ardens

9

S. Main St. Munroe alls 10 39 33 3 99 9/seniorlivinginstyle.com THE LIST

9

3

9

3

MO TH Y O ERSH P RATE RA E ADM STRATOR

ith housekeeping

hour staff daily fitness creative social learning and spiritual activities group trips clubs up to three meals served daily plus snacks monthly ellness visits by on staff nurse eekly housekeeping and laundry daily trash removal

profit

Three chef prepared meals a day all inclusive rates e cept phone service no hidden fees vie s of ake rie and Cleveland skyline daily Mass educational/recreational programming free covered parking

nonprofit

Chef prepared meals made from scratch housekeeping once a days a eek transportation for all doctor appointments

profit

eek activities seven

9

9

ritok Capital yana reer

Menorah ark oss Wilkoff ockport etirement td. enny elly

lo est rate

Spectrum etirement Communties ennifer Williorr Montefiore Housing Corp. van ubline

3

Sunrise Senior iving Inc. licia . Davies Catholic Charities nita errasch Brigid olan

3 9 3 9

Ha thorne etirement Maryann rvin

Assisted-Living Centers (excludes CCRCs)

Insight on the challenges of today Foresight for the road ahead

Ranked by number of residents

TOTAL

THIS YEAR

mcdonaldhopkins.com

MEMORY

STAFF/ CARE/ NO. OF Business Counseling Business Restructuring | Intellectual Property | Litigation | Tax and Benefits RESPITE | OTHER AMENITIES/ PROFIT MONTHLY OWNERSHIP/ RESIDENTS/ RNS/ UNITS (2)

LPNS (3) CARE?

SERVICES

STATUS

RATE RANGE ADMINISTRATOR

11

The Waterford at Richmond Heights 261 Richmond Road, Richmond Heights (216) 289-9800/capitalseniorliving.com

92 89

62 1 15

Y Y

Full size apartments (washer/dryer in most), 24/7 nurses/caregivers, onsite physical, occupational and speech therapies, made from scratch cooking, free transportation for doctor appointments, activities, physicians available

profit

$4,640-5,110

CSL Richmond Heights LLC Kimberly A. Ensign

12

Berea Lake Towers Retirement Community 4 Berea Commons, Berea (440) 243-9050/berealaketowers.com

90 97

41 2 4

N Y

Licensed residential care community with independent and assisted living services

profit

$2,550-4,450

Robert M. Coury Trust Jodi Collins

13

Danbury Broadview Heights 9500 Broadview Road, Broadview Heights (440) 596-3047/DanburySeniorLiving.com

89 101

68 NA NA

Y Y

Independent living available, studio, one and two bedroom apartments, chef-prepared meals, nurses and resident care companions 24/7; pets allowed, enrichment activities and trips, theater, bistro, fitness room, library, walking path

profit

$3,000-5,950

Broadview Heights Senior Living LLC Scott DePreist

14

Kemper House Strongsville 10890 Prospect Road, Strongsville (440) 846-1100/kemperhouse.com

84 59

25 2 3

Y Y

Complete care for people with memory care needs; all behavioral and care help provided

profit

$4,700-5,999

Betty Kemper John W. Kemper Jr.

15

Crystal Waters Retirement Community 18960 Falling Water Road, Strongsville (440) 238-3600/crystalwatersrc.com

73 76

37 1 4

N Y

Licensed residential care community with independent and assisted living services.

profit

$2,975-5,975

Phillip R. Coury, president Amber Voorheis

16

SouthWest Commons 18090 Pearl Road, Strongsville (440) 238-3777/lifeservicesassistedliving.com

70 68

57 1 4

NA NA

68 one-bedroom and deluxe studio apartment homes offering privacy and independence

profit

$4,315

LifeServices Assisted Living Chad Duchette

17

Aberdeen Crossings 399 Bishop Road, Highland Heights (440) 460-0686/lifeservicesassistedliving.com

70 68

45 1 3

NA NA

68 one-bedroom and deluxe studio apartment homes offering privacy and independence

profit

$4,315

LifeServices Assisted Living Jocelyn Zidar

18

Salida Woods Assisted Living 7685 Lakeshore Blvd., Mentor (440) 257-3866/lifeservicesassistedliving.com

70 68

42 1 2

NA NA

68 one-bedroom and deluxe studio apartment homes offering privacy and independence

profit

$4,315

LifeServices Assisted Living Karrie Sprowls

19

Vantage Place Inc. 3105 Franklin Blvd., Cleveland (216) 566-8707/vantageplace.com

65 86

32 1 6

NA NA

Standard assisted living services

profit

$878-1,775

Vantage Place Robert L. Royer Jr.

20

Arden Courts of Chagrin Falls 8100 E. Washington St., Chagrin Falls (440) 543-6766/hcr-manorcare.com

64 64

NA NA NA

Y Y

Secure building, one story open floor plan, secure outdoor courtyard, structured adult Montessori programming, engagement therapy, Namaste Care, barber and beauty salon

profit

NA

HCR Manorcare Elizabeth A. Schupp

21

Devon Oaks, an Eliza Jennings Community 2345 Crocker Road, Westlake (440) 250-2300/devonoaks.org

63 66

40 1 7

Y Y

Apartments with kitchenettes and private bathrooms, three meals daily, medical staff 24/7, medication management, housekeeping and laundry services, transportation, full activities schedule, pets welcome, SAIDO learning

nonprofit

$3,390-6,500

Eliza Jennings Senior Care Network Alexa Gasparro

22

Symphony at Mentor 8155 Mentor Hills Drive, Mentor (440) 256-8320/symphonyatmentor.com

63 54

70 NA 5

Y Y

Private and semi-private suites; respite stays; adult daycare; three meals a day; medication management; secured environment; outdoor courtyards; dementia programming; 24 hour nursing

profit

$4,320-7,614

Capital Health Group Wayne Louis II

23

Sunrise of Cuyahoga Falls 1500 State Road, Cuyahoga Falls (330) 929-8500/sunriseseniorliving.com

60 65

60 NA NA

Y NA

Meals, housekeeping/linen service, activities, beauty salon, secure memory care, 24 hour on-site nurse, pet friendly, emergency response system, companion, studio, onebedroom accommodations

profit

$3,420-7,500

Sunrise Senior Living Bethany Hall

24

Kemper House Highland Heights 407 Golfview Lane, Highland Heights (440) 461-0600/kemperhouse.com

60 56

75 NA NA

Y Y

Memory care community specializing in Alzheimer's disease and dementia; offers residential care, respite and daycare; home-like environment; owned and operated by a local family

profit

$4,500-6,300

Betty Kemper Jennifer Trudel

FACILITY NAME (1)

RESEARCHED BY CHUCK SODER

Want the full version of this list Ă&#x2018; and every other Crain's list? Become a Data Member: CrainsCleveland.com/data 40 facilities. Information is supplied by the organizations. Want to join this list? Have a correction or a suggestion? Contact Chuck Soder: csoder@crain.com The digital version of this list includes 39

(1) This list does not include facilities that consider themselves to be part of Continuing Care Retirement Communities, which offer independent living, assisted living and skilled nursing facilities on a single campus and often charge upfront fees. Crain's published a list of local CCRCs in 2016. (2) Facilities with equal numbers of residents are ranked by number of units and total staff. (3) Full-time equivalent (4) These facilities are part of the Menorah

Park campus, which also offers independent living and skilled nursing care; however, Menorah Park does not consider itself a Continuing Care Retirement Community due to the way it operates.

CRAIN’S CLEVELAND BUSINESS

FIFTH THIRD CONTINUED FROM PAGE 4

As DiRocco told Crain’s in the spring, adding new people to build out its commercial banking, mortgage, capital markets and wealth management services is a top priority — growing fee income is a key part of the company’s plans to grow profits.

In adding new talent, the goal is to reach more people in the marketplace and better serve them and draw quality loan customers.

“We need more clients,” DiRocco said, “and we need to expand and invest in our team.”

That’ll be a challenge in a market that features no shortage of large banks and is, in fact, seeing community banks grow larger in recent years, in many cases enabling them to compete on loan business with their larger counterparts. While much of that can be said for the industry overall, there’s a sense among bankers here that competition is undoubtedly tighter than ever.

“Across the board, across all geographies, it’s more competitive today than ever for the right relationships,” Carmichael said.

It makes sense, then, for Fifth Third to get DiRocco and Kelsheimer in front of clients now to drive business.

“I think there was a perception that for a while, their loan growth could be weaker to peers,” said Scott Siefers, a bank analyst with New York’s Sandler O'Neill and Partners.

“They’re intentionally running off some of their portfolio, like auto they de-emphasized, and they’ve got some commercial pieces of their portfolio that perhaps don’t meet their risk tolerance. Those are a few things that represent some company specific headwinds.”

“But that becomes a double-edged sword,” he added. “You improve your risk profile and loan book, but on the same token, everyone wants those

“Fifth Third is the largest bank headquartered in Ohio. This is our backyard. And we want to do extremely well in our backyard.”

— Greg Carmichael, Fifth Third Bank CEO

(high-quality loan customers) right now. The pricing for those credits is very, very intense.”

Project North Star targets 12% to 14% return on equity and 1.1% to 1.3% return on assets by 2019. The bank has garnered a reputation for effectively cutting costs. For example, it’s trimmed $72 million so far through a branch network reduction (DiRocco and Carmichael indicated the retail network in the Northeast Ohio market, which includes around 77 branches, is near an optimal level, though the bank is considering opening some locations in low-to-moder-

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In first-quarter earnings, Carmichael told investors the company expects to hit those financial goals by the end of next year, well ahead of schedule — something that surprised some analysts who were skeptical early this year the bank would be on track to hit its performance targets. And in June, in a move to deploy capital, the bank announced plans to hike its dividend payouts in third quarter of this year and stock buybacks after the Fed approved its stress tests — the Federal Reserve’s Comprehensive Capital Analysis and Review.

As the branch networks shrinks, Carmichael, who has a technology background and joined the bank in 2003 as chief information officer, is pushing a heavy investment in tech to support customer service. The bank has launched services and apps tied to groups likes Zelle (a payments platform), ApplePie (an online lending tool) and GreenSky (a fintech startup that provides tech to banks and merchants to make loans) in the past several months in support of those efforts. The bank has partnered with QED Investors, a Virginia-based private equity and venture capital firm, to bolster its Fintech strategy.

“The tightrope they have to continue to walk is continuing to meet customer needs, which is moving away from branches and the physical distribution network,” Siefers said. “Omnichannel (banking) is in the marching order. And with Greg’s background, there is going to be relatively more emphasis on that at Fifth Third than perhaps some other names.”

“As we look at this market, we want to make sure we are very competitive,” Carmichael said. “Fifth Third is the largest bank headquartered in Ohio. This is our backyard. And we want to do extremely well in our backyard.”

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Topics covered in the supplement include: • Finance • Health care • Legal affairs • Real estate • Welness

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CRAIN’S CLEVELAND BUSINESS

J U LY 17 - 2 3 , 2 017 |

TAX LIENS The Internal Revenue Service filed tax liens against the following businesses in the Cuyahoga County Recorder’s Office. The IRS lien is a public notice to creditors that the government has a claim against a company’s property.

Liens reported here are $5,000 and higher. Dates listed are the dates the documents were filed in the Recorder’s Office.

LIENS FILED 21st Century Concrete Construction 13925 Enterprise Ave., Cleveland Date filed: May 5, 2017 Type: Corporate income, unemployment Amount: $121,000.77

Berry Insulation Co. 1600 E. 25th St., Cleveland Date filed: April 27, 2017 Type: Employer’s withholding Amount: $103,718.42 Stroud-Lawrence Funeral Home 95 S. Franklin St., Chagrin Falls Date filed: April 27, 2017 Type: Employer’s withholding Amount: $95,525.83 Corbos Bakery Inc. 6966 Mayfield Road, Gates Mills Date filed: May 5, 2017 Type: Employer’s withholding Amount: $46,165.68 DeLoach Orthodontics Inc. 5 Severance Circle, Cleveland Heights Date filed: May 5, 2017 Type: Employer’s withholding Amount: $37,440.96

Cleveland Contemporary Chinese Culture Association 28950 Naylor Drive, Solon Date filed: April 27, 2017 Type: Nonpayroll withholding Amount: $26,428.58 Euclid Foreign Motors Inc. 19901 St. Clair Ave., Cleveland Date filed: April 27, 2017 Type: Employer’s withholding, unemployment Amount: $20,172.70 Linda V. Butler DDS 14100 Cedar Road, Suite 210, University Heights Date filed: April 27, 2017 Type: Employer’s withholding, unemployment Amount: $13,002.52

R&R Mechanical Inc. 3519 E. 75th St., Cleveland Date filed: April 27, 2017 Type: Employer’s withholding Amount: $11,895.83 Paul F. Smith Jr. DDS Inc. 3461 Warrensville Center Road, Suite 306, Shaker Heights Date filed: May 5, 2017 Type: Employer’s withholding, unemployment Amount: $8,027.38

LIENS RELEASED Stroud-Lawrence Funeral Home 95 S. Franklin St., Chagrin Falls Date filed: March 28, 2017 Date released: April 27, 2017 Type: Employer’s withholding Amount: $80,719.03

Lakewood Hardware 16608 Madison Ave., Lakewood Date filed: Nov. 1, 2012 Date released: April 27, 2017 Type: Employer’s withholding, unemployment Amount: $29,127.16 Rolen & Associates Inc. 26100 Broadway Ave., Suite C, Oakwood Village Date filed: May 20, 2016 Date released: April 27, 2017 Type: Employer’s withholding, corporate income Amount: $17,863.74

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FINANCIAL SERVICES

FINANCIAL SERVICES

Lori Pitzer

Charles Smith

Senior Private Banker

Senior Wealth Manager

BNY Mellon Wealth Management BNY Mellon Wealth Management, a top 10 U.S wealth manager, is expanding its Cleveland team. Lori Pitzer has joined as Senior Private Banker and brings extensive expertise of liquidity and leverage strategies that, when advantageous, can be integrated into clients’ wealth strategies. She holds a B.S. and an M.B.A. from Case Western Reserve University. Lori is an active member of several local not-for-profit boards. She can be reached at 216-593-2034 or lori.pitzer@bnymellon.com.

Also, joining the Cleveland team is Charles Smith as Vice President, Senior Wealth Manager, working directly with clients to address their complete investment and wealth planning needs. He received a B.A. from Baldwin Wallace College and an M.S.A. from Creighton University. Charles is active in the greater Cleveland community, serving on the board of directors for both the Kidney Foundation of Ohio and Fairhill Partners. He can be reached at 216-593-2010 or charles.smith@bnymellon. com.

LAW

Richard T. Heffern

Bryant Marnin

Director, Insurance

Senior Associate

Ancora

The Siegfried Group, LLP

Ancora is pleased to announce that Rick Heffern has joined the firm as Director, Insurance. At Ancora, Rick provides customized insurance offerings for the Firm’s individual, family and business clients. Prior to joining Ancora, Rick founded his own insurance practice and has held multiple leadership positions within the industry. Rick earned a Bachelor of Liberal Studies degree with an emphasis in Business from Hillsdale College in Michigan. He holds Life and Health Insurance Licenses.

Matt Scullen, CFA Vice President, Equities Analyst Ancora Ancora would like to congratulate Matt Scullen on his newly elected position of President of the CFA Society Cleveland for the 2017-18 term. Matt has held the CFA designation since August of 2012 and has previously served a term as Vice President of the CFA Society Cleveland. Matt joined Ancora in 2012 as an Institutional Equities Analyst as part of the Micro Cap strategy. Ancora congratulates Matt on his continued professional achievements!

Maria L. Cedroni

Kevin J. Soucek

Paul Franklin

Associate

Associate

Principal of Franklin Capital Strategies

Walter & Haverfield LLP

Walter & Haverfield LLP

Walter & Haverfield LLP is pleased to announce that Maria L. Cedroni has joined the firm as an associate in its Intellectual Property Group. Maria’s intellectual property practice focuses on patent drafting and prosecution, trademarks, and patent litigation. She works with clients which include pharmaceutical companies, health care businesses, laboratory testing facilities, medical device manufacturers, universities and research centers, and others. For more information, visit www.walterhav.com.

Walter & Haverfield LLP is pleased to announce that Kevin J. Soucek has joined the firm as an associate in its Intellectual Property Group. Kevin focuses his practice on a range of intellectual property issues, and related corporate and litigation matters. Prior to joining the firm, he had his own expanding practice representing clients throughout Ohio regarding intellectual property as well as other general business matters.

For more information, visit www.walterhav.com.

ACCOUNTING

Franklin Capital Strategies Paul Franklin, Principal of Franklin Capital Strategies (FCS), has announced that the company is opening a new office in Beachwood, OH. FCS is a full-service financial strategies firm founded by Franklin. He follows in the footsteps of his father and grandfather, who both had careers with New York Life in Cleveland. As a third generation adviser, Franklin’s goal is to help clients preserve and transfer wealth to the next generation.

FCS now has offices in Vienna, Virginia, and Beachwood, Ohio.

Bryant Marnin joins the Cleveland Market as a Senior Associate.

Before joining the Firm, Marnin held a role at Grant Thornton. A team-oriented problem solver, Marnin prides himself on providing high-quality work. He attended the University of Akron, earning a Bachelor of Science in accounting.

John Sarandis, CPA Senior Associate The Siegfried Group, LLP John Sarandis, CPA, joins our Cleveland Market as a Senior Associate. Goal-oriented, Sarandis focuses on how he can deliver solution-based ideas to his teams. He earned his Bachelor of Science in Business Administration with majors in in accounting and finance from Duquesne University and was most recently an Assurance Services Senior at EY. Matt Smith, CPA Senior Associate The Siegfried Group, LLP Matt Smith, CPA, joins the Cleveland Market as a Senior Associate. He comes to Siegfried from Meaden & Moore, where he gained four years of audit experience. Smith takes a sensible and analytical approach to any situation. He attended Miami University, where he earned his Bachelor of Science in accounting, and Cleveland State University, where he earned his MBA.

For more information or questions regarding advertising in this section, please call Lynn Calcaterra at (216) 771-5276 or email: lcalcaterra@crain.com

CRAIN’S CLEVELAND BUSINESS

Source Lunch

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J U LY 17 - 2 3 , 2 017

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PA G E 2 3

Steffany Larkins

Executive vice president and chief marketing officer, Medical Mutual Whether Steffany Larkins is grabbing lunch or pumping gas, there’s a good chance she’s visiting a Medical Mutual of Ohio customer. ¶ “If they’re not a customer, I’m not eating lunch,” Larkins said. “Lucky for me, there’s a large list of Medical Mutual customers right here downtown that I can choose to eat lunch at.” ¶ So, of course, Adega, where she sat down with Crain’s, is a customer. ¶ Larkins began her career at Medical Mutual in 1998 working in accounting, then progressed to financial reporting, corporate controller, underwriting, chief of staff and, as of January 2016, chief marketing officer. ¶ She’s responsible for all aspects of sales, underwriting and customer relations for the company. ¶ A recent graduate of Baldwin Wallace University’s heath care MBA program, Larkins stays busy. And with three sons, much of her spare time this year will be spent at 110 little league games — not an exaggeration, she noted. ¶ As Congress works through its efforts to repeal and replace the Affordable Care Act, “there’s never a dull moment,” Larkins said. — Lydia Coutré

Five things Hobbies?

Running in the Metroparks.

Favorite place in Northeast Ohio?

The Q, for Cavs and concerts.

What concerts do you like to go to?

Recently went to see Maroon 5, but pretty much any ’70s rock band.

Top of travel bucket list?

The Great Wall of China and Hong Kong.

Favorite movie of all time?

“Dirty Dancing”

Lunch spot Adega The Metropolitan at The 9 2017 E. Ninth St., Cleveland

The meal Arugala salad with salmon, veg-out wrap and two iced teas.

The vibe The chic restaurant in downtown Cleveland offers fresh, unique Mediterranean-inspired cuisine. “It’s a customer, it’s close and it’s excellent,” Larkins said.

The bill $44.28, with tip

What keeps you interested in the work?

The mission, plain and simple.

(Mission statement: To provide Ohioans access to high-value health care coverage).

What do you see as the biggest challenges for health insurance companies right now?

While you may expect me to answer the political environment and the uncertainty it brings (and, trust me, this is a huge challenge for health insurance companies), I’d still argue that the cost of health care, aging population and increasing chronic conditions among Americans remain our biggest challenges.

Why do you put those issues first?

Well, because there’s so much play right now in the media. The platform of both presidential candidates, a big chunk of that platform was on either keeping or repealing the Affordable Care Act, (also known as Obamacare). It’s just such a polarizing subject. And even without anything related to the Affordable Care Act from our vantage point, and my vantage point, is that let’s not forget that there are real problems with the health care system, the least of which is affordability.

What are the opportunities for health insurance companies?

There are big opportunities to change the entire health care system, and large health insurance companies, such as Medical Mutual, are positioned to help steer the change. One of those opportunities is to bring greater transparency in the health care space so consumers of health care truly understand the cost of health care services and become more educated consumers of health care. It’s pretty awesome knowing that the work we do at Medical Mutual impacts people’s ability to access affordable health care and ultimately their health and quality of life.

How is Medical Mutual poised to address those?

All of our major competitors are publicly traded Wall Street companies, and, therefore, they have to be concerned with maximizing growth

“Our focus is on providing health insurance to people in Ohio. That’s what I think about when I go to bed at night: How can I provide health insurance to more people in Ohio?” and shareholder returns. Medical Mutual is positioned to always do what is in the best interest of our policyholders, even if that means incurring some financial losses in the short term.

Can you explain why that’s so important?

Our focus is on providing health insurance to people in Ohio. That’s what I think about when I go to bed at night: How can I provide health insurance to more people in Ohio?

And that’s what I think about when I get up in the morning. And that doesn’t suggest that we can’t worry about tanking the company. We can.

We have to maintain a financial discipline, but I’m not waking up in the morning worrying about how much money am I delivering to shareholders. And I’m also trying to provide access to care. … We are headquartered in Ohio, and so I have sales vice presidents in all of our major markets. … They’re close to their customers, they’re close to the providers, the hospitals, the docs.

They know the landscape. And what we care about is servicing our local market. We are committed to all of the communities that we’re in.

What do you hope to see come out of federal health care policy reform?

It’s a pretty long list, but my No. 1 hope would be meaningful legislation that would address the cost of care.

The individual insurance market needs to be stabilized. There needs to be greater flexibility around benefits and product design for individuals and employers, and guaranteed issue needs to remain but there needs to be enforceable rules around continuous coverage.

CLEVELAND BUSINESS 700 W. St. Clair Ave., Suite 310, Cleveland, OH 44113 Phone: 216-522-1383; www.crainscleveland.com Reprints: Krista Bora; 212-210-0750; kbora@crain.com Customer service and subscriptions: 877-824-9373

Volume 38, Number 29 Crain’s Cleveland Business (ISSN 0197-2375) is published weekly at 700 West St. Clair Ave., Suite 310, Cleveland, OH 441131230. Copyright © 2017 by Crain Communications Inc. Periodicals postage paid at Cleveland, Ohio, and at additional mailing offices. Price per copy: $2.00.

POSTMASTER: Send address changes to Crain’s Cleveland Business, Circulation Department, 1155 Gratiot Avenue, Detroit, Michigan 48207-2912.

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